Most Retirees Don't Take Advantage Of This Medicare Feature, And It Can Cost You

Everyone's health — and therefore health care needs — changes over time. But what many retirees may not realize is that you can change your Medicare plan to better meet these needs. Every year, Medicare beneficiaries can review and adjust their plans during the Medicare Open Enrollment period, which runs from October 15 to December 7. During this window, you can change your Medicare Advantage Plan, adjust your drug plan, or even switch from Original Medicare to Medicare Advantage (or vice versa).

And yet, most people don't take advantage of this opportunity. KFF reports that nearly 70% of Medicare beneficiaries didn't compare plans during the 2022 Open Enrollment period, and a recent University of Michigan survey of adults aged 65 and older found that 27% didn't review their 2026 coverage during Open Enrollment, while 33% spent less than an hour reviewing their options.

Since costs, coverage, and provider networks can change annually, not reviewing your plan can be an expensive mistake. For example, some Medicare Advantage and Part D insurers are increasing their premiums in 2027 due in part to rising drug prices and increased use of costly drugs like GLP-1s. Not only that, but some Medicare Advantage plans may be discontinued in your area, meaning you'll need to enroll in another plan or face being automatically switched to Original Medicare. Original Medicare doesn't include drug coverage, but it can also come with higher premiums than Medicare Advantage once you add on the Part D prescription drug plan.

Reviewing your plan matters even more in 2026, since premiums for some plans are set to rise in 2027. While the Centers for Medicare & Medicaid Services announced that the average premium for stand-alone Part D prescription drug plans would increase by less than $1 per month in 2027, KFF estimates that figure to be much higher. According to KFF, if current enrollees keep their same plan in 2027, the average premium for stand-alone Part D plans will actually increase by $17 per month — jumping from $34 to $51. That said, exactly how much your specific premium might increase will depend on your insurer and plan.

People with Medicare Advantage drug plans won't be affected as much by premium increases. For them, KFF estimates an average increase of less than $2 per month. However, not everyone can access more affordable Medicare Advantage options. In fact, in 2027 a whopping 193 counties will not have access to Medicare Advantage plans with drug coverage, per KFF. This is up from 123 counties in 2026. If you live in an area where Medicare Advantage is no longer an option, you'll need to switch to Original Medicare and join a drug plan with potentially higher premiums – making it especially important to review and compare plan costs.

Open enrollment can be a great way to gain back some control over your health care costs. Every fall, pay close attention to your Annual Notice of Change (ANOC), which is usually sent in September. Doing this is one of the best ways retirees can lower their Medicare costs, since this document indicates any changes to your premiums, co-pays, spending maximums, and covered prescriptions and services.

You can then use this information to compare your plan against other options in your area using the Medicare.gov finder tool. It's also important to check whether your health care provider and pharmacy are in-network; otherwise, you might have to pay full costs yourself. If, after reviewing everything, you decide you're happy with your current plan, you don't need to do anything during the Open Enrollment period. Remember that a little time spent reviewing your options now could keep you from paying more for Medicare next year.