Over 1.5 million Tennessee residents could be affected by Medicare changes beginning Jan. 1, 2027.
The Centers for Medicare & Medicaid Services announced that the average monthly premium for stand-alone Part D prescription drug plans
will be $36 in 2027, up from $35.09 in 2026. For Medicare Advantage plans, the average premium will drop to $12 in 2027 from $14.37 in 2026. That is a decrease of $2.37.All Medicare recipients enrolled in privately administered Medicare Advantage plans and Part D prescription drug plans should have received notification in September about coverage changes for 2027.
Here are the four most important details to know before enrolling in Medicare coverage for 2027.
When is open enrollment for Medicare?
Medicare open enrollment runs from Oct. 15 through Dec.
7 for coverage beginning Jan. 1, 2027. During this time, enrollees can change their Medicare plans for the coming year.
Changes coming to Medicare in 2027
1. Eligibility changes
Starting in 2027, Medicare applicants must be one of the following to qualify for coverage: a U.S. citizen, a U.S. national, a lawful permanent resident, a Cuban-Haitian entrant or a lawfully present migrant from a Compact of Free Association nation. This is more specific than the current rules, which require Medicare beneficiaries to be U.S. citizens or lawfully admitted noncitizens who have lived in the U.S. for at least five years.
2. Increased out-of-pocket costs for Part D coverage
Medicare beneficiaries will see their Part D costs increase slightly next year. The deductible will increase from a maximum of $615 in 2026 to $700 in 2027. In addition, the annual out-of-pocket maximum will increase from $2,100 in 2026 to $2,400 in 2027. The total includes payments made on a beneficiary's behalf through programs such as Extra Help.
The figures above represent the maximum amounts Part D plans can charge in 2027. Some plans may charge less or have no deductible. Beneficiaries seeking to limit their retirement health care costs should compare plan options during open enrollment.
3. ACCESS model
Medicare has introduced a new program called ACCESS (Advancing Chronic Care with Effective, Scalable Solutions). This program helps people prevent and manage chronic diseases. Participation is optional for those who have Original Medicare.
The program connects a beneficiary's doctor with other health care providers and resources to help manage chronic health conditions. Beneficiaries should contact their physicians to determine whether the program is available.
4. Virtual Medicare Diabetes Prevention Program
Seniors with prediabetes or those who meet other eligibility requirements can join a Medicare Diabetes Prevention Program. This program teaches them how to maintain healthy habits. Previously, this course was offered in person at various locations.
Starting in 2027, Medicare beneficiaries can join these sessions online. Participants may attend live sessions or view recorded videos.
Medicare beneficiaries reviewing coverage options for 2027 should consider these changes during open enrollment. Those with questions can contact the Centers for Medicare & Medicaid Services for more information before selecting next year's coverage. Once the open enrollment period ends, beneficiaries generally remain enrolled in their selected 2027 plan unless they qualify for a special enrollment period.
How many people in Tennessee receive Medicare?
The most recent data from healthinsurance.org shows that Tennessee had 1,517,648 residents enrolled in Medicare as of January 2026. According to the insurance guide, 88% of enrolled recipients were eligible to receive benefits based on age, while the other 12% received benefits based on disability.
There are 751,979 residents in the state enrolled in Medicare Part D alongside regular Medicare benefits and 481,295 who receive Part D alone. That means about 81% of Tennessee Medicare beneficiaries are enrolled in Part D coverage and could face higher out-of-pocket costs in 2027.
USA TODAY contributed to this report.
Jordan Green covers trending news for The Commercial Appeal and Tennessee. She can be reached at jordan.green@commercialappeal.com.
This article originally appeared on Memphis Commercial Appeal: Medicare changes in 2027 could affect 1.5 million in Tennessee
