Author: Tarek Moaz

Some encouraging news for those reviewing their Medicare options: Federal estimates show that Medicare Advantage premiums are projected to decrease by more than 15% in 2027. Bundled drug coverage within these plans is also expected to drop by around 40%. The average monthly premium for all private-plan options is anticipated to be $12 in 2027, down from over $14, while extra benefits should remain steady. Nationwide, plan availability is expected to be nearly unchanged, which means you’ll still have a wide range of choices when Open Enrollment comes around (October 15 to December 7). Officials recommend taking this opportunity to carefully review your coverage, compare the available options, and make sure your plan aligns with your healthcare needs and household budget. For those considering stand-alone drug coverage, the average premiums are expected to remain stable, and most beneficiaries will continue to have access to enhanced coverage for less than $6 a month. As someone who focuses exclusively on Medicare, I’m here to help make this process clearer and more manageable for you.

Lately, I've noticed a significant increase in Medicare Advantage plan switching—especially among those who are dual-eligible. From 2016 to 2022, voluntary plan changes within Medicare Advantage jumped from around 12% to 22% for fully dual-eligible members, and from 17% to 30% for those partially dual-eligible. For other beneficiaries, the rate moved from about 10% to 13%. Yet, even with all this switching, very few people moved from Medicare Advantage back to traditional Medicare by 2022—just about 4% for fully dual-eligible, 2% for partial dual-eligible, and less than 1% for everyone else.

It’s interesting to see how switching patterns vary by age, risk, and race or ethnicity: older beneficiaries tended to change plans less often, while those with the highest health risks were more likely to move to traditional Medicare. These trends often mean changes in provider networks and plan features, which can really impact your coverage experience. I focus on helping my clients navigate these choices, so you can find a plan that truly fits your needs—without any added stress or cost.

As someone who specializes in Medicare, I work with clients every day who are navigating the complexities of coverage and costs. One detail that often catches people off guard is that while life insurance death benefits are typically tax-free, any interest earned if the payout is delayed is taxable—and that extra income can affect your Medicare premiums.

For example, if a widow usually has a MAGI around $105K, even just $10K in taxable interest could push her above the $109K single-filer threshold, triggering higher Part B premiums. At about $115K MAGI, a single filer would see their Part B premium go up by $81.20 each month and Part D by $14.50—adding up to roughly $1,100 more per year in premiums.

If you’ve recently lost a spouse, know that you can ask Social Security to review a newer, lower income figure if your household income has dropped. Before deciding to leave proceeds with an insurer, it’s wise to check how the interest timing could impact your taxable income and Medicare surcharges. Sometimes, taking funds sooner rather than later can help limit those extra earnings—and the unexpected costs that come with them. My goal is always to help clients make informed choices, so you can get the most from your coverage and avoid surprises.

I'm Tarek, and as someone who spends every day helping folks navigate Medicare, I know how important it is to understand what your coverage actually includes—and what it leaves out. Even with Original Medicare, many common health costs in 2027 will remain uncovered. Long-term custodial care—think assisted living or extended nursing home stays—won't be part of standard benefits, and only limited skilled nursing or specific home services will qualify. Routine dental, vision, glasses, contacts, and hearing aids are usually not included either, with only a few exceptions for certain medical conditions. Coverage also doesn’t extend to care received abroad, elective cosmetic treatments, over-the-counter items, routine foot care, or extra comfort costs during treatment, unless there are narrow medical exceptions. That’s why it’s so important to review your options and budget for these likely gaps—especially for long-term care, dental, vision, hearing, and those smaller, incidental expenses. When you’re planning for retirement, a little foresight goes a long way in making sure you’re truly covered.