The Medicare Letter You’re Tempted to Toss: Your 2027 Annual Notice of Change, Decoded
Somewhere in there, between the pizza coupons, is the most important boring letter of your year. Photo: Simon Morrison via Wikimedia Commons, CC BY 2.5 (cropped).
Somewhere between the furniture-store flyer and the "final notice" about a car warranty you never had, there's an envelope from your Medicare plan. It's called the Annual Notice of Change, or ANOC, because the federal government has never met a phrase it couldn't turn into an acronym. It looks boring. It is boring. It's also the one piece of fall mail that tells you, in writing, how your coverage is about to change on January 1.
Here's what the letter is, what to look for, and the dates that matter for 2027 coverage. No plan recommendations, no sales pitch, just the rules.
What the ANOC Actually Is
If you're in a Medicare plan (a Medicare Advantage plan or a Medicare drug plan, also called Part D), your plan sends you an ANOC each fall. According to Medicare.gov, it lists the changes in coverage, costs, and more that take effect in January. The 2027 "Medicare & You" handbook adds that it covers changes to provider networks and service area, too, and that Medicare Advantage plans will send a printed or electronic copy by September 30. The more detailed "Evidence of Coverage" follows by October 15.
Didn't get yours? Medicare's official advice is refreshingly simple: contact your plan.
The 2027 Calendar (Tape This to the Fridge)
Per the 2027 handbook and Medicare's "Your Yearly Medicare Review" guide:
October 1, 2026: Start comparing your current coverage with 2027 options at Medicare.gov/plan-compare.
October 15 to December 7, 2026: Open Enrollment. You can join, switch, or drop a Medicare Advantage plan or a drug plan, or switch between Original Medicare and Medicare Advantage. The plan has to get your enrollment by December 7, so "I mailed it on the 7th" is not a strategy.
January 1, 2027: New coverage starts. If you stayed put, your plan's changes start too.
January 1 to March 31, 2027: If you're in a Medicare Advantage plan, you can switch to a different one or go back to Original Medicare (and add a separate drug plan). This window does not let people in Original Medicare switch drug plans. Because of course there are exceptions to the exceptions.
What's Changing for Drug Coverage in 2027
Your pill organizer resets every week. Your drug plan’s costs can change every January. Photo: Stevepb via Wikimedia Commons, CC0.
A few numbers are already locked in:
Deductible: If your plan has a drug deductible, it can be no more than $700 in 2027, up from $615 in 2026, per CMS's 2027 Rate Announcement (Attachment V, Table V-2). Some plans have no deductible at all.
Out-of-pocket cap: Your out-of-pocket costs for covered Part D drugs are capped at $2,400 in 2027, up from $2,100 in 2026 (same CMS table). Once you (or programs like Extra Help) hit that amount, you pay $0 for covered Part D drugs for the rest of the year, according to the handbook.
A temporary premium program is ending: CMS announced it will end the Part D Premium Stabilization Demonstration, a voluntary program for standalone drug plans that started in 2025, at the end of 2026, returning to "traditional market conditions" in 2027. Translation: if you have a standalone drug plan, read the premium line on your ANOC carefully instead of assuming it matches last year.
That $41.33 figure in the headlines: It's the 2027 "base beneficiary premium." CMS describes it as the starting point for calculating a plan's premium. It is not your bill. Your ANOC has your actual number.
Negotiated drug prices: Prices for the next 15 drugs Medicare negotiated under Part D take effect January 1, 2027. Medicare's 2027 fact sheet says to contact your plan for details on how these prices might affect you.
Insulin: A one-month supply of each covered insulin product costs no more than $35, per the handbook.
Five Things to Check in the Letter
The premium. Also, a "$0 premium" Medicare Advantage plan is not a $0 plan. The handbook notes you may still pay the Part B premium.
Your prescriptions. Each plan has its own list of covered drugs, called a formulary. Per the handbook, what you pay depends on things like whether your drug is on that list, which "tier" it's in, and which pharmacy you use. So look up every medication you take, not just the expensive ones.
Your doctors, hospitals, and pharmacies. The ANOC covers network changes. Medicare's plan-joining guide says to ask your doctors and pharmacies directly whether they're in a plan's network.
Deductibles, copays, and coinsurance. The premium is what you pay every month. These are what you pay when you actually use the coverage.
Whether your plan still exists next year. Plans can decide not to participate in Medicare. If yours does, the handbook says your coverage ends after December 31 and the plan will send a letter explaining your options. You can pick a new plan October 15 to December 7, you have a special right to join another Medicare health plan until the last day of February, and you may have a federal right to buy certain Medigap policies within 63 days after your plan coverage ends.
Myths That Refuse to Retire
Myth: "If I ignore the letter, nothing changes." Your plan's changes start January 1 whether you read the letter or not. Ignoring it just means you find out at the pharmacy counter.
Myth: "I have to re-enroll every year or I lose coverage." No. Medicare's review guide says that if you've reviewed your options and you're happy, you don't need to do anything. Your coverage continues automatically.
Myth: "A discount card price is basically the same as using my plan." Per Medicare's 2027 fact sheet, when you use a discount card instead of your coverage, it isn't considered creditable coverage and doesn't count toward your Medicare deductible or out-of-pocket maximum. Medicare itself suggests comparing prices, so the cash price may sometimes win. Just know what you're giving up.
Myth: "I can always switch back." If you drop a Medigap policy to join a Medicare Advantage plan, the handbook warns you may not be able to get it back, or it might cost more, depending on your state's rules and your situation.
Where to Get Unbiased Help (and Who to Hang Up On)
Your phone doesn't need to be this old to hang up on an unsolicited "Medicare" sales call. Photo: Daderot via Wikimedia Commons, CC0.
Medicare Plan Finder: According to Medicare's review guide, Medicare.gov/plan-compare lets you compare plans side by side, get estimates of your total out-of-pocket costs, and get customized cost information for your drugs and pharmacies.
1-800-MEDICARE (1-800-633-4227): Medicare says you can talk or chat with a real person 24/7, except some federal holidays. TTY: 1-877-486-2048.
Your State Health Insurance Assistance Program (SHIP): Medicare's contact page points to SHIPs for free health insurance counseling, including choosing a plan, reviewing coverage, and understanding costs. Find yours at shiphelp.org.
Extra Help: If your income and resources are limited, this program helps pay Part D costs like premiums, deductibles, and coinsurance. The 2027 handbook lists 2026 limits of under $23,940 in yearly income and under $18,090 in resources for a single person, and notes you may qualify with a higher income in some situations. Apply at SSA.gov/extrahelp.
Now the hang-up list. The handbook says plans don't need your personal information to give you a quote, and they can't sign you up over the phone unless you called them or gave them permission to contact you. Medicare wants you to report plans or agents that ask for your personal information over the phone or email, call to enroll you, show up unexpectedly, or use false information to mislead you. That number is 1-800-MEDICARE.
The Bottom Line
The ANOC is Medicare's version of "we've updated our terms and conditions," except these terms decide what you pay for your prescriptions next year. Read it when it arrives, check your drugs and doctors against it, compare options once Plan Finder has 2027 plans, and make any changes between October 15 and December 7. If everything still fits, congratulations: doing nothing is officially allowed.
Disclaimer: This article is general education, not personal insurance, legal, tax, or financial advice. Medicare rules and plan details vary by plan and by state. Numbers are from CMS and Medicare publications available as of September 26, 2026, so confirm your own plan's costs and coverage with your plan, Medicare, or your local SHIP before making a decision.
Sources
Medicare & You 2027 (official handbook, PDF) – Medicare.gov / CMS
Your Yearly Medicare Review (CMS Product No. 11220, September 2026, PDF) – Medicare.gov
Your Medicare in 2027: What's New & Changing (CMS Product No. 12229, September 2026, PDF) – Medicare.gov
Medicare Part D 2027 National Average Monthly Bid Amount Information (fact sheet, July 28, 2026) – CMS
State Health Insurance Assistance Program (SHIP) locator – SHIP National Technical Assistance Center
Extra Help with Medicare prescription drug costs – Social Security Administration
