Medicare Part D 2027: Premiums Are Set to Rise — Here’s What Changed
Medicare Part D 2027 is shaping up differently than recent years. If you’re on a standalone Part D drug plan, there’s a real change coming worth knowing about before Open Enrollment starts this fall.
In late July 2026, the Centers for Medicare and Medicaid Services ended a program called the Part D Premium Stabilization Demonstration. That subsidy has been quietly keeping drug plan premiums low since 2025, holding the average monthly cost under $40. Without it, one federal watchdog report estimated premiums would have climbed from around $43 to about $81 a month. Now that the subsidy is gone, most experts expect standalone Part D premiums to go up for a lot of people in the new plan year — though nobody can say by exactly how much yet, since plan-specific pricing hasn’t been released.
I want to be upfront: I don’t sell standalone Part D plans, so this isn’t a pitch. But I talk to a lot of people every year who assume their Medicare coverage just renews itself the same way, year after year, and this is exactly the kind of change that makes assuming a bad idea.
What Actually Happens Next
Your Part D carrier will send you an Annual Notice of Change (ANOC) this fall. That letter spells out exactly what’s changing about your specific plan — premium, deductible, drug formulary, all of it. Don’t let it sit in a pile of mail.
Then you’ve got a real window to act. Medicare Open Enrollment runs October 15 through December 7. That’s your chance to compare Part D plans, switch if your current one got more expensive, or just confirm what you have still makes sense heading into Medicare Part D 2027.
While You’re Looking, Look at the Whole Picture
Medicare Part D 2027 pricing changes are a good excuse to actually sit down and look at your full Medicare setup, not just the drug plan. That includes your Medicare Supplement coverage — is it still the right fit, still priced competitively, still covering what you need? A lot of people haven’t checked in years.
If you want a second set of eyes on any of it — your Part D options, your Supplement plan, or just want someone to walk through what Open Enrollment actually means for your situation — give me a call or visit the website. No pressure, no call center, just a real conversation about what makes sense for you.
Medicare’s Annual Enrollment Period (AEP) runs October 15 through December 7, 2026. Any changes you make take effect January 1, 2027. Here’s what AEP actually covers, what’s new for 2026, and why it’s worth a look even if you’re not planning to change anything.
What AEP Actually Covers
AEP is specifically the window for changing Medicare Advantage and Part D prescription drug coverage — joining, switching, or dropping either. It is not the enrollment window for Medicare Supplement (Medigap) plans. Medigap doesn’t have a single national enrollment period the way Advantage and Part D do; you can generally shop for a Medigap plan at any time, though outside your original Medigap Open Enrollment window or a guaranteed-issue situation, carriers can medically underwrite you.
Why AEP Season Still Matters If You Have Medigap
Even though Medigap itself isn’t on the AEP calendar, fall is still the right time to check a few things:
Your Part D drug plan — if you carry a standalone Part D plan alongside Medigap, its formulary and pricing can change every year, so it’s worth reviewing during AEP (I’m not licensed to sell Part D plans myself, but it’s still worth checking on your end or with your Part D agent).
Your Medigap premium — carriers commonly adjust Medigap rates at renewal. If yours went up significantly, it’s worth comparing what else is available, especially if your health has stayed steady since you first enrolled.
Whether Medicare Advantage still makes sense for you — if you’re on an Advantage plan and considering a move to Original Medicare plus Medigap, AEP is when you’d drop the Advantage plan; just know that moving to Medigap afterward may involve medical underwriting unless you qualify for guaranteed issue.
What’s Different for 2026
A few concrete numbers worth knowing this year:
The standard Medicare Part B premium is $202.90/month for 2026, up from $185/month in 2025.
The Part D out-of-pocket cap increased from $2,000 (2025) to a higher indexed amount for 2026, and enrollees can still choose to spread that cost across the year in equal monthly payments instead of paying it early.
Some insurers are exiting the Medicare Advantage market or reducing plan offerings for 2026 — if that affects your current plan, you’ll likely get a notice from your carrier this fall, and it’s worth acting on it rather than setting it aside.
A Few Common Mistakes During AEP
Comparing plans on premium alone, without confirming your doctors and pharmacy are still in-network. Waiting until the first week of December to make a decision, which leaves little room to fix a mistake before the deadline. Assuming a plan that worked well last year hasn’t changed — formularies and networks are re-evaluated annually, not locked in.
How I Can Help
When you call, I spend about five minutes learning your situation, then I go research quotes across multiple Medigap carriers — not just one company’s price. You get a detailed, side-by-side quote by email, and you review it on your own time. No pressure to decide on the call. I don’t sell Medicare Advantage or Part D plans, so I’m not working an angle when I tell you whether your current Medigap setup still makes sense or not.
I’ve laid out the full turning-65 process in this Medicare checklist, and if Mayo Clinic access matters to your plan choice, I’ve covered exactly which plans keep it in-network in this breakdown.
Frequently Asked Questions
What are the AEP dates for 2026?
Medicare’s Annual Enrollment Period runs October 15 through December 7, 2026. Changes made during this window take effect January 1, 2027.
Does AEP apply to Medicare Supplement (Medigap) plans?
No. AEP covers Medicare Advantage and Part D prescription drug plan changes. Medigap doesn’t have a fixed annual enrollment period — you can generally apply anytime, though medical underwriting may apply outside your original Medigap Open Enrollment window or a guaranteed-issue situation.
What is the Medicare Part B premium for 2026?
The standard Part B premium for 2026 is $202.90 per month, up from $185 per month in 2025. Higher-income enrollees pay more.
What happens if I miss the December 7 AEP deadline?
If you miss AEP and don’t qualify for a Special Enrollment Period, you’ll generally need to wait for the Medicare Advantage Open Enrollment Period (January 1 – March 31), which has more limited options — it only allows switching between Medicare Advantage plans or dropping Advantage for Original Medicare, not adding or changing a standalone Part D plan.
Mayo Clinic Arizona insurance questions come up constantly — Mayo in Scottsdale and Phoenix is one of the top reasons people choose to stay in Arizona for their healthcare. But here’s what a lot of people don’t find out until they’re already sitting in the waiting room with the wrong coverage: not every health plan gets you in the door. Here’s exactly what does — and doesn’t — work.
Mayo Clinic Arizona Insurance: The Short Answer
Original Medicare + a Medicare Supplement (Medigap) — accepted at Mayo Clinic Arizona, no exceptions.
Medicare Advantage — Mayo Clinic does not accept non-contracted Medicare Advantage plans. If you’re on one, don’t assume you’re covered.
ACA Marketplace plans (Ambetter, Blue Cross Blue Shield, Cigna, Oscar, UnitedHealthcare Marketplace) — not accepted at Mayo Clinic Arizona as of 2026.
Private off-exchange PPO plans (like UHC Choice Plus or Aetna Open Choice PPO) — accepted, but these are underwritten plans you buy directly, not subsidized Marketplace plans.
If You’re on Medicare: The Plan G vs. Plan N Detail That Matters at Mayo
Mayo Clinic Arizona accepts Original Medicare and any Medicare Supplement carrier — that part is straightforward. But there’s a detail specific to the Arizona location that trips people up: unlike Mayo’s Florida campus, Mayo Clinic Arizona does not accept full Medicare Assignment. That means they’re allowed to bill up to 15% above what Medicare approves — what’s called an “excess charge.”
This is exactly where the choice between Medigap Plan G and Plan N actually matters. Plan G covers those excess charges in full. Plan N does not — so if you’re a Plan N holder being treated at Mayo Clinic Arizona, you could see a bill for that difference. I’ve written a full breakdown of Plan G vs. Plan N in Arizona if you want the complete comparison, but if Mayo Clinic access matters to you specifically, that excess-charge detail alone is often reason enough to choose Plan G.
You’ll also need a referral to be seen at Mayo, and in some cases prior authorization for specific tests or procedures — standard Medicare rules, not something unique to Mayo.
Why Medicare Advantage Is the Riskiest Choice Here
Mayo Clinic’s own guidance is direct: they do not accept non-contracted Medicare Advantage plans. If you’re 65+ and want reliable access to Mayo, a Medicare Advantage plan puts that access at the mercy of whatever network your specific carrier has negotiated — and that can change year to year. I don’t sell Medicare Advantage, and this is one of the clearest real-world examples of why: here’s the full explanation.
If You’re Under 65: The ACA Marketplace Doesn’t Get You In
This is the one that catches people off guard. None of the individual ACA Marketplace plans sold in Arizona for 2026 — not Ambetter, not Blue Cross Blue Shield, not Cigna, not Oscar, not UnitedHealthcare’s Marketplace plans — are accepted at Mayo Clinic Arizona. Banner|Aetna and BCBS Statewide PPO, which used to offer some access, are no longer on the ACA Marketplace at all as of 2026.
To get Mayo Clinic access under 65, you generally need a private, off-exchange PPO plan — options like UHC Choice Plus or Aetna’s Open Choice PPO network are commonly accepted. These aren’t Marketplace plans, so there’s no subsidy, and most are medically underwritten, meaning your health history affects your rate and whether you qualify at all. That’s a real tradeoff: broader network access in exchange for underwriting and no tax credit.
Frequently Asked Questions
Does Mayo Clinic Arizona accept Medicare?
Yes — Original Medicare plus a Medicare Supplement (Medigap) is accepted at Mayo Clinic Arizona with no exceptions.
Does Mayo Clinic Arizona accept Medicare Advantage plans?
Mayo Clinic does not accept non-contracted Medicare Advantage plans. If you’re on a Medicare Advantage plan, don’t assume you’re covered — check your specific plan’s contract status before you need care.
Does Mayo Clinic Arizona accept ACA Marketplace plans?
No. As of 2026, ACA Marketplace plans — including Ambetter, Blue Cross Blue Shield, Cigna, Oscar, and UnitedHealthcare Marketplace — are not accepted at Mayo Clinic Arizona.
What insurance do I need to see a doctor at Mayo Clinic Arizona if I’m under 65?
Private off-exchange PPO plans, such as UHC Choice Plus or Aetna Open Choice PPO, are accepted at Mayo Clinic Arizona. These are medically underwritten plans purchased outside the ACA Marketplace.
How I Can Help
Whether Mayo Clinic access is the deciding factor for you or just one piece of a bigger decision, I’ll compare your options — Medigap, ACA Marketplace, or private PPO — against what you actually need, including which hospitals and doctors matter to you. I don’t sell Medicare Advantage, and I’ll tell you plainly when a plan won’t get you where you want to go.
Serving Scottsdale, Phoenix, Surprise, Peoria, Glendale, Mesa, Chandler, Gilbert, and all of Arizona.
American Insurance Benefits | 14955 W Bell Rd #8031, Surprise, AZ 85374 | Licensed Arizona Insurance Broker since 1999. This page reflects Mayo Clinic Arizona’s publicly stated insurance policies as of 2026; always confirm current network status directly with Mayo Clinic before making a coverage decision.
If you’re turning 65 in Arizona in the next year, you’ve probably already gotten a stack of mail from insurance companies — and maybe a few phone calls you didn’t ask for. Here’s the thing: this decision only has one real do-over window, and it closes fast. Let’s walk through exactly what you need to do, in order, so you don’t miss anything.
Your 7-Month Window: The Initial Enrollment Period
Medicare gives you a seven-month Initial Enrollment Period (IEP) built around your 65th birthday: three months before, your birthday month, and three months after. This is your one guaranteed shot to sign up without medical underwriting or penalties.
Enrolling in the three months before your birthday month means your coverage starts the day you turn 65. Wait until later in the window, and your start date pushes back — sometimes by months. That gap matters if you’re relying on Medicare to replace coverage you’re losing.
Are You Enrolled Automatically, or Do You Have to Apply?
This trips up more people than anything else. If you’re already receiving Social Security retirement benefits at least four months before you turn 65, Medicare Parts A and B kick in automatically — your card shows up in the mail about three months before your birthday, no action needed.
If you haven’t started Social Security yet, enrollment is not automatic. You have to apply yourself through the Social Security Administration at ssa.gov or by calling 1-800-772-1213. Miss this step and you can end up without coverage on your birthday.
Still Working? You Might Be Able to Delay — But Check First
If you’re still working at 65 and covered by an employer group plan (yours or a spouse’s), you may be able to delay Medicare enrollment without penalty, as long as that employer coverage counts as “creditable” — meaning it’s considered at least as good as Medicare’s. This is worth confirming with your employer’s benefits department before you assume you’re covered.
Get this wrong and it’s expensive: go 63 days or more without creditable drug coverage, and Medicare charges you a Part D late enrollment penalty for the rest of your life. Not a one-time fee — permanent, added to every monthly premium going forward.
The Big Decision: Medigap or Medicare Advantage?
Once you’re enrolled in Original Medicare (Parts A and B), you’ll choose how to fill the gaps — Medicare pays roughly 80% of covered costs, and something needs to cover the rest. You have two paths, and they work very differently:
Medicare Supplement (Medigap) pairs with Original Medicare. Any doctor or hospital that accepts Medicare — anywhere in the country — is in-network. No referrals, no prior authorizations, no network to worry about.
Medicare Advantage replaces Original Medicare with a private plan, usually built around a specific network of doctors and hospitals. Premiums are often lower or $0, but you’re limited to that network, and switching back to Medigap later isn’t guaranteed — insurers can medically underwrite you outside your Initial Enrollment Period.
I don’t sell Medicare Advantage, and I’ve written about exactly why on this page if you want the full explanation. In Arizona, Plan G is the most popular Medigap option — I’ve broken down how it compares to Plan N in this comparison if you’re trying to decide between the two.
Your Turning 65 in Arizona Checklist
3 months before your birthday month: Confirm whether you’re auto-enrolled (already on Social Security) or need to apply yourself.
Check employer coverage: If you’re still working, confirm with your benefits department whether your drug coverage is “creditable” so you avoid the Part D penalty.
Decide: Medigap or Medicare Advantage? This is the decision that’s hardest to undo later — worth getting right the first time.
Compare Medigap carriers. Plan G coverage is federally standardized, so the letter is identical everywhere — but premiums between carriers can differ by $50–$100 a month for the exact same plan.
Enroll before your window closes. Miss your 7-month IEP and you’re waiting for the General Enrollment Period (January–March), possibly with a lifetime penalty attached.
Frequently Asked Questions
When do I need to enroll in Medicare after turning 65 in Arizona?
You have a 7-month Initial Enrollment Period — three months before your birthday month, your birthday month, and three months after. Enrolling in the three months before your birthday month means your coverage starts exactly on your 65th birthday.
Am I automatically enrolled in Medicare when I turn 65?
Only if you’re already receiving Social Security retirement benefits at least four months before you turn 65 — in that case, your Medicare card arrives automatically about three months before your birthday. If you haven’t started Social Security yet, you must apply yourself through the Social Security Administration.
Can I delay Medicare if I’m still working at 65?
Yes, if you’re covered by a qualifying employer group health plan. But confirm with your employer’s benefits department that the coverage is considered “creditable” — otherwise you risk a permanent Part D late-enrollment penalty if you go 63 days or more without creditable drug coverage.
What’s the difference between Medigap and Medicare Advantage in Arizona?
Medigap (Medicare Supplement) pairs with Original Medicare and lets you see any doctor or hospital that accepts Medicare, anywhere in the country, with no referrals or networks. Medicare Advantage replaces Original Medicare with a private network-based plan — often lower premiums, but limited to that network, and switching back to Medigap later isn’t guaranteed.
What happens if I miss my Initial Enrollment Period?
You’ll need to wait for the General Enrollment Period (January–March), and you may face a permanent Part B premium penalty for each year you were eligible but didn’t enroll.
How I Can Help
I’ve been helping people turning 65 in Arizona since 2004. When you call, I spend about five minutes learning your situation, then I go research quotes across multiple Medigap carriers — not just one company’s price. You get a detailed, side-by-side quote by email, and you review it on your own time. No pressure to decide on the call.
Plan G vs Plan N — when choosing a Medicare Supplement plan in Arizona, this is the comparison that matters most. Both plans are popular. Both cover most of what Original Medicare leaves behind. However, they handle office visits and cost-sharing differently. In this guide, you’ll see exactly how Plan G vs Plan N compares — so you can choose the right plan for 2026.
What Plan G and Plan N Both Cover
First, it helps to know what these two plans share. Both Plan G vs Plan N cover the following:
Medicare Part A coinsurance and hospital costs
Medicare Part A deductible ($1,676 in 2026)
Medicare Part A hospice care coinsurance
Skilled nursing facility coinsurance
Medicare Part B coinsurance — with one key difference explained below
Foreign travel emergency care up to plan limits
In addition, both plans require you to pay the Part B deductible ($257 in 2026) once per year. After that, coverage kicks in. So far, they look nearly identical. The differences, however, matter a lot depending on how often you use your insurance.
Plan G vs Plan N: The Key Differences
Plan G covers 100% of your Medicare Part B coinsurance. Therefore, after your Part B deductible, you owe nothing for covered outpatient care.
Plan N covers most Part B coinsurance — but not all. Specifically, Plan N has these out-of-pocket costs:
Up to $20 copay per office visit
Up to $50 copay per emergency room visit (waived if admitted)
Part B excess charges — if a doctor doesn’t accept Medicare assignment, you pay the difference between their rate and Medicare’s approved amount
Most Arizona doctors accept Medicare assignment. As a result, excess charges rarely come up. However, the office visit copays do add up if you see doctors often. That’s the core of the Plan G vs Plan N decision.
How Premiums Compare in Arizona
Plan N typically costs $20–$40 less per month than Plan G in Arizona. Therefore, over a full year, you could save $240–$480 in premiums with Plan N.
However, that savings only holds if your copays stay below the premium difference. For example, if you visit the doctor six times per year, that’s up to $120 in Plan N copays. In that case, Plan N still wins on price. On the other hand, frequent visits or ER trips can close the gap quickly.
The bottom line: run the numbers for your situation. That’s exactly what I do for clients at no charge.
Who Should Choose Plan G
Plan G makes the most sense in these situations:
You have ongoing health conditions or frequent doctor visits
You want predictable costs with no copay surprises
You travel often and may see out-of-network providers
You simply want the most comprehensive coverage available
In short, Plan G is the “set it and forget it” option. After your Part B deductible, your costs are done for the year.
Who Should Choose Plan N
Plan N works well in these situations:
You are generally healthy and see a doctor only a few times per year
You want to lower your monthly premium
Your doctors all accept Medicare assignment
You are comfortable paying a small copay at visits
Furthermore, Plan N is a smart choice for people who want solid Medigap coverage without paying for benefits they rarely use.
Plan G vs Plan N: Carriers in Arizona
Both plans are standardized by the federal government. Therefore, the benefits are identical no matter which insurance company you buy from. What differs between carriers is the monthly premium and the company’s rate history.
Whether you choose Plan G or Plan N, timing is critical. When you first enroll in Medicare Part B, you receive a 6-month Medigap open enrollment window. During this period, insurance companies cannot deny you or charge more based on health history.
After this window closes, however, insurers can use medical underwriting. Consequently, pre-existing conditions could affect your options or your premium. This window only happens once. Therefore, if you’re turning 65, get your Medigap plan in place before your birthday month.
I’m Andy Orlikoff, an independent Medicare Supplement broker in Surprise, AZ. I’ve been helping Arizona residents compare Plan G vs Plan N and enroll in the right coverage since 2004. I don’t sell Medicare Advantage — just honest Medigap guidance at no cost to you.
I’ll pull side-by-side quotes from multiple carriers and walk you through the numbers. You decide what fits. I handle the enrollment.
