Medicare open enrollment underway with changes to plans and drug costs

Open enrollment for Medicare, the federal health insurance program primarily for those 65 and older, began recently and will run through December 7, ABC News reported.

Many enrollees in Medicare Advantage plans, which are privately run but Medicare-approved, may need to find new plans as insurers reduce the number of offerings. The average number of Medicare Advantage plans available to beneficiaries is projected to drop from 39 in 2026 to 35 in 2027, according to a KFF analysis cited by ABC News.

Medicare Advantage plans must follow Medicare rules, including limits on out-of-pocket expenses and coverage of services included in traditional Medicare. About 35 million people are currently enrolled in these plans.

Regarding prescription drug costs, the Trump administration ended a temporary subsidy program, which may lead to increased costs for some drugs. However, the Centers for Medicare & Medicaid Services expects prescription drug prices in Medicare Advantage to remain stable overall, with average premiums projected to fall by more than 30%.

During open enrollment, beneficiaries can choose between traditional Medicare and Medicare Advantage plans for the upcoming year, making it important for enrollees to review their options in light of these changes.