Medicare AEP Is Open Through Dec. 7: Part D Deductible Hits $700, OOP Cap $2,400 — ANOC Checklist Before You Switch

Medicare Annual Enrollment is open through Dec. 7, 2026. Pull out your ANOC letter and compare 2027 costs before you renew on autopilot. Photo: Pexels (6975194), Pexels License.

Medicare’s Annual Enrollment Period (AEP) is open right now. The window runs from October 15 through December 7, 2026, and any changes you make during AEP take effect on January 1, 2027. That is the main yearly chance most people with Medicare get to switch between Original Medicare and Medicare Advantage, change Advantage plans, or join or switch a standalone Part D drug plan.

If you do nothing, your current coverage generally renews for 2027 — but it renews with every change your plan put in the Annual Notice of Change (ANOC). Premiums, deductibles, drug lists, doctor networks, and prior-authorization rules can all shift. CMS and Medicare.gov both urge beneficiaries to review 2027 options on Plan Finder because plan costs and benefits change from year to year.

This Dollar Lane guide walks through what you can change during AEP, the key 2027 Part D numbers (maximum standard deductible $700, annual out-of-pocket threshold $2,400), how to use your ANOC, what still applies under the Inflation Reduction Act (insulin and vaccines), the Medicare Prescription Payment Plan, Extra Help, late-enrollment penalties, and Medigap timing — plus a practical checklist before you hit “enroll.”

Sources used throughout: Medicare.gov Part D costs, CMS Open Enrollment / 2027 MA-PD stability release, KFF and AP coverage of open enrollment. This is educational U.S. personal-finance content, not personalized insurance advice.

AEP dates for 2026–27: the window you cannot miss

Mark these dates in writing — refrigerator, phone calendar, and a sticky note on your ANOC:

• October 15, 2026: Medicare Annual Enrollment Period opens.
• December 7, 2026: AEP closes at the end of the day.
• January 1, 2027: Coverage changes you made during AEP take effect.

CMS confirmed the same Oct. 15–Dec. 7, 2026 Open Enrollment window in its 2027 Medicare Advantage and Part D stability announcement, and encouraged people with Medicare to compare 2027 plans at Medicare.gov. AP and other national outlets likewise framed Oct. 15 as the start of the period when enrollees can choose between traditional Medicare and Medicare Advantage, plus prescription drug plans, with changes effective Jan. 1.

There are other enrollment periods (Initial Enrollment Period when you first get Medicare, Special Enrollment Periods for moves or certain plan exits, and the Medicare Advantage Open Enrollment Period from Jan. 1–March 31 for people already in MA). Do not confuse those with AEP. For most households reading this in mid-October, AEP is the big annual decision window.

What you can change during Medicare AEP

During AEP you can typically:

• Switch from Original Medicare (Parts A and B, often with a Medigap policy and a Part D plan) to a Medicare Advantage plan (Part C), or the other way around.
• Switch from one Medicare Advantage plan to another Medicare Advantage plan.
• Join a standalone Part D prescription drug plan (PDP) if you have Original Medicare and need drug coverage.
• Switch from one Part D PDP to another.
• Drop a Part D plan (not usually wise if you lack other creditable drug coverage — see the late-enrollment penalty section).

You generally use Medicare.gov Plan Finder or call 1-800-MEDICARE. Licensed brokers and State Health Insurance Assistance Programs (SHIP) can also help you compare. Whatever channel you use, enter your full drug list, preferred pharmacies, and doctors so the cost estimates match your real life — not a generic “popular plan” ranking.

If you do nothing

Doing nothing is still a decision. Your current MA or Part D plan will usually auto-renew for 2027. That renewal includes every change spelled out in your ANOC: a higher (or lower) premium, a new deductible, drugs moved to a different tier, pharmacies dropped from preferred status, specialists leaving the network, and new utilization-management rules. Auto-renewal is fine when you deliberately compared and liked the 2027 terms. It is expensive when you never opened the mail.

Your ANOC letter: due by Sept. 30 — how to use it in October

Plans must send the Annual Notice of Change (ANOC) by September 30 each year. If you are already in a Medicare Advantage or Part D plan, you should have received it (mail, and often also digitally if you opted in). The ANOC is not junk mail. It is the one document that lists what is changing for your plan in 2027 compared with 2026.

Sit down with the ANOC and a highlighter. Check at least:

• Monthly premium (plan premium, not only Part B).
• Medical and drug deductibles.
• Maximum out-of-pocket for medical benefits (MA plans).
• Whether your doctors, hospitals, and preferred pharmacies stay in network.
• Whether each of your prescriptions stays on the formulary — and at which tier, with what prior auth or step therapy.
• Any new benefits that look “free” but come with network or referral strings.

Then open Medicare.gov Plan Finder and re-run your comparison with 2027 plan data. Keep the ANOC next to the screen so you can spot where another plan’s total estimated annual cost undercuts your renewing plan — or where your renewing plan is still the best fit.

Use Plan Finder with your real drug list and pharmacies — then match the results against doctors and prior-authorization rules in your ANOC. Photo: Pexels (7735629), Pexels License.

2027 Part D numbers that matter: $700 deductible, $2,400 OOP cap

Medicare.gov’s Part D cost page states the hard caps for the defined standard benefit clearly:

• Maximum Part D deductible: no Medicare drug plan may have a deductible more than $700 in 2027 (it was $615 in 2026). Some plans still offer $0 or a lower deductible.
• Annual out-of-pocket threshold: after your out-of-pocket spending on covered Part D drugs reaches $2,400 in 2027 (it was $2,100 in 2026), you move into catastrophic coverage and generally pay $0 out of pocket for covered Part D drugs for the rest of the calendar year.

Those figures come straight from Medicare.gov’s “How much does Medicare drug coverage cost?” page and align with CMS’s announced 2027 Part D benefit parameters. They are maximums and thresholds for the standard benefit design — your specific plan’s premium, deductible (if any), and tiered copays still vary. Always compare the plan you would actually enroll in.

2026 vs 2027 Part D deductible max and annual OOP threshold. Chart: Dollar Lane (original). Data: Medicare.gov / CMS.

Part D parameter	2026	2027
Max standard deductible	$615	$700
Annual OOP threshold / cap	$2,100	$2,400
Covered insulin (IRA)	≤ $35/month product	≤ $35/month product (still applies)
ACIP adult vaccines (IRA)	$0 cost sharing	$0 cost sharing (still applies)

In the deductible stage, you pay 100% until you hit your plan’s deductible (capped at the amounts above). In the initial coverage stage, standard benefit design generally has you paying 25% coinsurance on covered generics and brand-name drugs until you reach the annual OOP threshold. After that, catastrophic coverage means no more out-of-pocket cost for covered Part D drugs for the rest of the year. Your monthly Explanation of Benefits (EOB) from the plan shows which stage you are in.

Insulin $35 cap and $0 adult vaccines still apply

Under the Inflation Reduction Act rules reflected on Medicare.gov, covered insulin products continue to have no deductible and cost no more than $35 per month per covered insulin product (subject to the lesser-of rules involving negotiated prices). Recommended adult vaccines under ACIP guidance continue to have no deductible and $0 cost sharing when covered by your Part D plan. Those IRA consumer protections remain a reason to confirm your plan’s formulary still lists the exact insulin and vaccines you use — “IRA rules exist” is not the same as “this plan covers my brand.”

Medicare Prescription Payment Plan: spreads costs, does not cut them

The Medicare Prescription Payment Plan (sometimes abbreviated MPPP) lets you pay $0 at the pharmacy for covered Part D drugs and instead get a monthly bill from your plan that spreads those out-of-pocket costs across the remaining months of the calendar year. Medicare.gov is explicit: this option can help you manage cash flow, but it does not save you money or lower your total drug costs. You still owe the same out-of-pocket amounts; you just pay them over time.

Participation is voluntary. You can generally opt in through your Part D or MA-PD plan. Monthly billed amounts can change as you fill new prescriptions and as fewer months remain in the year. You will not pay more than your total covered out-of-pocket costs, and the annual OOP threshold ($2,400 in 2027) still caps what counts toward catastrophic coverage. If your drug spending is lumpy (one expensive fill in February), the payment plan can smooth the hit. If your spending is already even and low, it may add little value beyond another bill to track.

Part B premium for 2027: not final yet — do not lock a fake number

CMS has not announced the final standard Part B premium for 2027 as of this writing. Historically, CMS releases the official Part B premium, deductible, and related figures in the fall — often in November. Do not treat social-media screenshots or unverified blogs as the official number.

Earlier this month we covered a Trustees Report projection around $209.50 for the 2027 Part B standard premium — clearly labeled as a projection, not a CMS final announcement. See our earlier post: Medicare Part B premium projected for 2027. Until CMS publishes the final figure, budget with a cushion, and remember that people with higher incomes may also owe IRMAA surcharges on Part B and Part D.

Separately, Social Security’s official 2027 COLA is 3.6%. Your net January deposit is the COLA increase minus any Part B (and, if applicable, Part D IRMAA) changes. We broke down the COLA math here: It’s official: Social Security COLA 2027 is 3.6% and the earlier preview Social Security COLA 2027 (Oct. 14).

Extra Help (LIS): quick check if income is limited

Extra Help (the Low-Income Subsidy, or LIS) is a Medicare program that helps pay Part D premiums, deductibles, coinsurance, and other drug costs for people who qualify. You automatically qualify for Extra Help if you have Medicaid, certain Medicare Savings Programs, or SSI. If you do not automatically qualify, you can still apply through Social Security.

CMS’s Open Enrollment materials also note that people with limited income may qualify for programs that help with Medicare costs, and that individuals enrolled in a Medicare Savings Program automatically get Extra Help. During AEP, Extra Help recipients often have additional plan-switching flexibility — confirm your current rights on Medicare.gov/extrahelp or with SHIP before you assume you are locked into one PDP.

Part D late enrollment penalty: the mistake that follows you

If, after your Initial Enrollment Period ends, you go 63 or more days in a row without Medicare Part D or other creditable prescription drug coverage, you can owe a Part D late enrollment penalty. Medicare.gov explains that the penalty is generally permanent for as long as you have Medicare drug coverage: it is added to your Part D premium even if you later switch plans.

The formula multiplies 1% of the national base beneficiary premium by the number of full uncovered months. For 2026, Medicare.gov lists the national base beneficiary premium used in that calculation as $38.99. The base premium can change yearly, so the dollar penalty can rise even if your uncovered months stay fixed. Extra Help recipients generally do not pay the late enrollment penalty.

Practical takeaway for AEP: if you are dropping a Part D plan because “I barely take meds,” make sure you truly have other creditable coverage (for example, qualifying employer or union drug coverage). “Barely take meds” is exactly how people invent a lifelong surcharge.

Medigap during AEP: not the same open door

This is one of the most common October myths: “It’s open enrollment, so I can grab any Medigap plan.” That is not how federal Medigap rules work.

Medigap (Medicare Supplement) policies are sold by private insurers to people with Original Medicare (Parts A and B). You generally cannot have Medigap while enrolled in a Medicare Advantage plan — it is illegal for someone to sell you Medigap if you have MA.

Your best federal guaranteed-issue window for Medigap is usually your one-time Medigap Open Enrollment Period: the six-month period that starts the first day of the month you are 65 or older and enrolled in Part B. Outside that window, federal law does not give you a blanket right to buy any Medigap policy during AEP. Insurers may use medical underwriting, charge more, or refuse coverage — unless a specific guaranteed-issue right applies (for example, certain Medicare Advantage plan exits or other qualifying losses of coverage). State laws can add protections; check your State Insurance Department or SHIP.

If you use AEP to leave Medicare Advantage and return to Original Medicare, ask specifically whether you have a guaranteed-issue right to Medigap in your situation and what the application deadlines are (often measured in days before/after MA coverage ends). Do not assume AEP alone equals Medigap open enrollment.

Compare on Medicare.gov Plan Finder — then verify the real world

CMS’s message for this Open Enrollment is straightforward: use Medicare.gov Plan Finder to compare 2027 Medicare health and drug plans — premiums, costs, benefits, and other coverage details. A useful Plan Finder session usually looks like this:

1. Create or sign in to your Medicare account so results can save.
2. Enter every prescription (dose and frequency) and your preferred pharmacies.
3. Add your doctors and facilities when comparing MA plans.
4. Sort by total estimated annual cost, not only the lowest premium.
5. Open the plan details: formulary tier, prior authorization, step therapy, mail-order rules.
6. Call the plan or use its provider directory to confirm your specialists are still in network for 2027.
7. Call your pharmacy and ask whether it is preferred or standard for that plan’s network.
8. Read star ratings as one signal — not a substitute for your drug list.

Lower premium is not always lower total cost. A $0-premium Advantage plan with a narrow specialist network and a non-preferred pharmacy can cost more over a year of fills and visits than a modest-premium plan that matches your doctors and drugs. Run the numbers with your list.

Original Medicare vs Medicare Advantage during AEP: a clear-eyed tradeoff

AEP is when many households revisit the structural choice:

• Original Medicare + Part D (+ optional Medigap): broad provider access with most doctors who accept Medicare; you manage Medigap premiums (if you have a policy) and a separate drug plan. Medigap can limit cost-sharing but is underwritten outside special windows.
• Medicare Advantage (often with built-in Part D): typically networks, referrals/prior auth for some services, and an annual medical OOP maximum. Extra benefits (dental, vision, OTC cards) can look attractive — weigh them against network fit and prior-auth friction.

Neither path is universally “better.” The right answer is the one that covers your 2027 doctors, drugs, and risk tolerance at a total cost you can pay. Revisit the choice every AEP, especially if you moved, started a specialty drug, or your favorite cardiologist left last year’s MA network.

Practical ANOC / AEP checklist (do this before Dec. 7)

Print this list or copy it into your notes app. Aim to finish steps 1–8 by mid-November so you still have time if a plan’s directory was wrong or a drug needs a formulary exception.

1. Find your ANOC (mail or plan portal). If missing, call the plan and request another copy.
2. Highlight 2027 changes to premium, deductibles, OOP max, network, and formulary.
3. List every drug you take (name, dose, how often) plus insulin brands and any specialty meds.
4. List doctors, hospitals, and pharmacies you actually use — not theoretical ones.
5. Run Medicare.gov Plan Finder for 2027 with that full list.
6. Compare total estimated annual cost of your renewing plan vs. top alternatives.
7. Verify networks by phone for at least your top two specialists and your pharmacy’s preferred status.
8. Check IRA protections on your plan: insulin ≤ $35/month per covered product; $0 ACIP adult vaccines when covered.
9. Decide on the Medicare Prescription Payment Plan only if cash-flow smoothing helps; it does not reduce totals.
10. Screen for Extra Help / Medicare Savings Programs if income and resources are limited.
11. If leaving MA for Original Medicare, research Medigap guaranteed-issue rights and deadlines in your state before you enroll.
12. Avoid dropping Part D unless you have other creditable drug coverage — protect yourself from the late enrollment penalty.
13. Enroll (or confirm renew) and save confirmation screens/emails. Changes effective Jan. 1, 2027.
14. Set a January reminder to check your first EOB, new ID cards, and that your pharmacy adjudicates the new plan correctly.

Soft next step: compare costs, then decide

You do not need to switch every year. You do need to look every year. Start with the ANOC, run Plan Finder with your real drug and pharmacy list, and only then decide whether renewing or switching saves money without breaking your care team. Official tools live at Medicare.gov; Extra Help details at Medicare.gov/extrahelp; plan questions go to your plan or 1-800-MEDICARE.

If you want the Social Security side of the January paycheck math while you wait for the final Part B figure, keep our COLA explainers handy — and treat any Part B dollar amount you see before the CMS announcement as provisional.

Dollar Lane covers U.S. personal finance and insurance for a USA audience. We do not sell Medicare plans and do not earn commissions from the links to Medicare.gov or CMS above. Rules and plan landscapes change; verify details on primary sources before you enroll.