A Steadier Market, Familiar Pressures, and What to Expect This AEP
The difference this year is that the pace of change feels more controlled — particularly within Medicare Advantage. The big haircut MA members took on their benefits the past two years will feel more like a trim this year. The market isn’t “back to normal,” but it’s behaving more predictably, and that’s a welcome shift.
Meanwhile, the cost pressures that hit Medicare Advantage first are now showing up more clearly in the Medicare Supplement (Medigap) + Part D space. Rising Med Supp premiums and the “limbo status” surrounding standalone Part D plans suggest that this part of the market will feel more pressure — and undergo more reshaping — over the next several years.
Our mission, as always, is to help you navigate these changes with clarity, confidence, and a steady hand.
Medicare Advantage: Stabilizing, but Still Tightening Around the Edges
After two years of noticeable compression, Medicare Advantage plans are showing early signs of stabilizing. Benefits are still adjusting, but the swings seem smaller and more consistent across carriers. Some carriers made early adjustments and look steadier this year; others that were slower to react are still taking their medicine.
Here’s what most people can expect:
- Extra benefits continue to compress. Dental, vision, hearing, OTC allowances, and Part B givebacks remain under pressure. Benefits will still be offered — just not at the levels seen during the “rich benefit” years.
- Cost‑sharing adjustments remain modest. Copays and annual limits on what you may spend for medical services may tick upward, but not dramatically.
- Networks look steadier though shake-ups will continue. Some markets may still see movement, but the widespread disruptions of this past year should be less common. Going forward, alignment between carrier networks and provider health systems will be a major factor in choosing or keeping a plan.
- Carriers are offering fewer plans. The trend is toward fewer, stronger flagship offerings rather than large menus of similar plans.
- PPOs will continue, but fewer will be available. Medicare is incenting carriers to focus more on strengthening HMO enrollment, and the market is responding accordingly.
- Fewer plan discontinuations. Some members will receive notices that their plan will not be offered in 2027, but far fewer than last year.
If You Receive a Notice That Your Plan Is No Longer Offered
You may receive a letter in place of the customary Annual Notice of Change (ANOC) stating that your plan will not continue in 2027 and that you must select new coverage.
Reach out to us right away. We’ll review your doctors, medications, and priorities and help you select a new plan that fits your needs. These transitions are straightforward when handled early.
If You Receive the Annual Notice of Change (ANOC) as Usual
Most people will simply receive their ANOC. Please take a moment to review it for:
- Changes in copays
- Changes in your annual medical spending limit
- Adjustments to supplemental benefits
- Any network or drug formulary updates
If anything looks unclear, we’re here to walk through it with you.
Medicare Supplement (Medigap) + Part D Prescription Drug Plans: Rate Pressure and Ongoing Part D Disruption
For those with Medicare Supplement (Medigap) coverage paired with a standalone Part D plan, the story remains familiar — and increasingly important.
Medicare Supplement (Medigap) Rate Trends
Medigap benefits typically don’t change much, but pricing does, and carriers continue to file higher rate increases than in years past across most states. This trend is expected to continue as claims experience rises and the average age of policyholders increases.
With rising Med Supp premiums and the growing uncertainty surrounding standalone Part D plans, we anticipate a steady increase — beginning this year and continuing over the next several years — in the number of Med Supp enrollees choosing to move to Medicare Advantage plans. For many, the combination of lower premiums, predictable costs, consolidated coverage, and fewer moving parts will become increasingly appealing.
Switching to a new Medicare Supplement (Medigap) plan or carrier is often challenging for anyone with pre‑existing conditions or a meaningful medical history. If you’re already in a strong carrier’s Medicare Supplement (Medigap) plan, staying put is often the most stable long‑term strategy unless you’re in a state with a birthday rule or guaranteed‑issue window.
Part D (Standalone Plans): Arguably the Murkiest and Most Volatile Corner of Medicare
Standalone Part D Prescription Drug Plans — the PDPs paired with Medicare Supplement (Medigap) — continue to experience the most disruption of any Medicare segment. This is distinct from the Part D coverage built into Medicare Advantage plans, which is not experiencing the same level of upheaval.
The ongoing volatility has led many carriers to at least for the foreseeable future carve brokers, agents, advisors, and similar channels out of the standalone Part D equation. Most carriers have eliminated broker compensation, and several no longer provide enrollment capabilities through the broker channel. Increasingly, beneficiaries must enroll directly with the carrier or through Medicare.gov.
We will continue to assist our clients — and we will guide you — but any actual plan changes or enrollments may need to be completed directly with the carrier.
Here’s what to expect in 2027:
- Fewer standalone PDP options
- Escalating monthly premiums
- Shifting formularies and tier structures
- More changes
Because 2027 standalone Part D plans and/or premiums may vary considerably from 2026, a quick annual check remains important, especially if your medications have changed or you’ve grown accustomed to a low or no monthly premium.
The Big Picture: A Market Still Adjusting, but More Predictably
The Medicare market is still navigating the same pressures that began in 2025: rising medical costs, tighter payment formulas, and carriers recalibrating benefits to stay sustainable. But unlike last year, the adjustments feel more measured.
It’s important to remember: you are not being singled out. Nearly all carriers — across nearly all markets — are adjusting their plans in response to the same pressures. The grass isn’t necessarily greener elsewhere; it’s simply being trimmed differently.
For most people, the best approach is simple:
- If your plan is continuing: Review your ANOC and reach out if anything looks off.
- If your MA plan is ending: Contact us immediately so we can help you choose a new one.
- If you have Medicare Supplement (Medigap) + Part D: Expect rate increases and other Part D changes.
We’ve been through market shifts before, and we know how to help you make informed, confident decisions. Our priority remains your best interest: Preserving coverage that fits your needs, minimizing disruption, and ensuring you understand your options.
If you know someone who’s feeling uncertain heading into AEP, feel free to share this update. A little clarity goes a long way.
If there are specific topics you’d like us to address in future issues please drop us a line at 65plus@bbginc.net with your suggestions.