Prepare for Medicare & Medi-Cal Changes in 2027 

The Medicare Annual Enrollment Period (AEP) runs October 15 – December 7, 2026, for health coverage starting January 1, 2027. This is the time when Medicare beneficiaries can review their health and drug plans and make changes to better fit their needs. 

Every fall, Medicare Advantage and Part D plans may change premiums, benefits, or costs. You will receive an Annual Notice of Change in September. During AEP you can: 

• Enroll in, switch, or drop a Medicare Part D prescription drug plan. 
• Join or change a Medicare Advantage (Part C) HMO or PPO plan. 
• Return to Original Medicare and add a Part D plan or Medigap for greater provider choice. 

What’s expected in 2027: 

• Part D Drug Cost Protection Continues: Medicare’s prescription drug redesign continues in 2027, including a yearly out‑of‑pocket cap (estimated around $2,400 in 2027, up from $2,100 in 2026). After you reach the cap, you pay nothing for covered Part D drugs for the rest of the year.
• Medicare Advantage Plan Changes: Plans may adjust benefits, provider networks, and costs each year. New federal rules for 2027 also update how plans are rated for quality (Star Ratings) and how they communicate with enrollees.  
• More Focus on Quality of Care: Medicare is refining its Star Ratings system to emphasize health outcomes and patient experience, which may affect how plans perform and the benefits they offer.  
• Medi‑Cal Enrollment Limits: California has paused new enrollment for certain undocumented adults. Current Medi‑Cal members can keep their coverage as long as they remain eligible and complete renewal requirements.  
• Medi‑Cal Asset Test in Effect: Medi‑Cal now includes an asset limit of $130,000 for an individual, with additional amounts allowed for household members.  
• Annual Medi‑Cal Renewals: Medi‑Cal members must complete annual renewals. Coverage could end if eligibility requirements are no longer met, or paperwork is not returned on time. 

How to prepare: 

• Create a Medicare.gov account to review prescriptions and coverage. 
• Ask HICAP about Extra Help (Low-Income Subsidy) to lower Part D costs; many Medi-Cal beneficiaries qualify automatically. Bring a list of current medications to appointments and watch your mailbox for your Annual Notice of Change (ANOC) in September.

Get support with the Health Insurance Counseling & Advocacy Program (HICAP) by Sourcewise. They offer free, unbiased counseling by phone, video, or in person at community locations. During AEP, HICAP offers presentations titled 

“Medicare’s 2026 Annual Enrollment Period and Updates for 2027” via Zoom and at community sites across Santa Clara County. To attend, visit mysourcewise.com/calendar. To schedule a one-on-one session, call (408) 350-3288.