Medicare Explained in Plain Language for 2027

The four parts of Medicare

• Part A helps cover inpatient hospital care and certain other facility-based services.
• Part B helps cover physician services, outpatient care, preventive services and certain medical equipment.
• Part C, Medicare Advantage, is an alternative way to receive Part A and Part B benefits through a private Medicare-approved plan.
• Part D helps cover prescription drugs through stand-alone drug plans or Medicare Advantage plans that include drug coverage.

Original Medicare or Medicare Advantage?

With Original Medicare, you can generally see any provider that accepts Medicare nationwide, and you may add a stand-alone Part D plan and optional Medigap coverage. Medicare Advantage plans use private-plan networks, service areas and plan rules, and may include additional benefits that vary by plan and county.

What changed for 2027 Part D?

For 2027, the standard Part D deductible is $700 and the annual out-of-pocket threshold is $2,400. Your actual premium, deductible, pharmacy network, formulary and copays depend on the specific plan.

When can you enroll or change coverage?

For 2027 coverage, Medicare Annual Enrollment runs October 15 through December 7, 2026. Medicare Advantage Open Enrollment runs January 1 through March 31, 2027 for people already enrolled in Medicare Advantage. Initial and Special Enrollment Periods may apply in other circumstances.

What should you compare?

• Your doctors, hospitals and preferred pharmacies.
• Your prescription drugs and formulary restrictions.
• Monthly premiums, deductibles, copays and maximum out-of-pocket exposure.
• Travel needs, provider flexibility and referral rules.
• Any plan-specific supplemental benefits and eligibility requirements.