Newsletter

MEDICARE MARKETING BEGINS TODAY

Marketing for Medicare Advantage and Part D drug plans begins today. The Annual Enrollment Period (AEP) — when individuals can change plans — runs from October 15 to December 7, with any changes taking effect on January 1, 2027.

Beneficiaries currently enrolled in a Medicare Advantage or Part D plan will receive an Annual Notice of Change (ANOC) from their plan, which should have arrived already or will be arriving shortly. Beneficiaries whose plan is terminating or reducing its service area will receive a separate plan termination letter, which by regulation must be mailed no later than October 2.

If you receive a termination letter, read it carefully — it explains your rights. Unless you want to return to Original Medicare without drug coverage, you'll need to submit an enrollment application in a new plan by December 31. You also have a Special Enrollment Period allowing you to join a different plan through February 28 of next year. Note: if your plan is terminating and you decide to return to Original Medicare, you may have guaranteed-issue rights to purchase a Medigap policy without medical underwriting — this is worth confirming with a licensed agent before you make a final decision.

As mentioned in prior newsletters, AEP is also a time when scams proliferate. Be cautious of unsolicited calls. Be careful about saying "yes" during a call — it may be recorded, and a recorded "yes" could later be used as authorization for a plan change you didn't intend to make. Never give your Social Security number or Medicare number to a caller you don't know. Unsolicited outbound sales calls are against Medicare marketing rules, but they remain common this time of year regardless.

WHAT TO EXPECT THIS ANNUAL ENROLLMENT SEASON — A SOUTHEAST FLORIDA PERSPECTIVE

Annual Enrollment (October 15–December 7) tends to feel a little different in Southeast Florida than it does in much of the rest of the country, and this year is no exception. Miami-Dade, Broward, and Palm Beach counties have long been among the most competitive Medicare Advantage markets in the nation, with an unusually high number of plans available in a small geographic area, a large population of beneficiaries who qualify for both Medicare and Medicaid, and a significant "snowbird" community that splits time between Florida and other states. All that shapes how this season plays out locally.

Nationally, Medicare Advantage is in its fourth consecutive year of market contraction, and this year's disruption is larger than last year's — nearly 3 million beneficiaries nationwide are expected to be affected by plan exits and terminations for 2027, as several carriers continue narrowing their Medicare Advantage footprints or leaving the business in certain markets altogether.

A few broad patterns are worth knowing about as you head into this Annual Enrollment period, whether you're in Southeast Florida or elsewhere:

PPO plans are seeing some of the biggest changes this year.

PPO plans have become harder for carriers to manage profitably because of out-of-network cost exposure, and the shift away from them has become more pronounced this year, particularly here in Palm Beach County. At least one major national carrier is scaling back its PPO presence significantly in this market, and others are narrowing PPO networks or reducing PPO benefits while keeping their HMO plans more stable. If you're currently in a PPO plan, this is a year to pay especially close attention to your Annual Notice of Change (ANOC) or termination letter received from a carrier — don't assume your plan is continuing as-is.

Carriers continue shifting membership toward HMOs.

This trend tends to be especially visible in dense markets like Southeast Florida, where HMO network options are typically broad enough that carriers see less need to offer PPOs.

Plans built for dual-eligible and chronic-condition populations remain a growth area.

("Dual-eligible" refers to beneficiaries who qualify for both Medicare and Medicaid at the same time, often due to limited income — Southeast Florida has a notably large dual-eligible population.) "Chronic-condition populations" refers to a separate category of specialized plan, called a Chronic Condition Special Needs Plan, designed for beneficiaries managing a specific ongoing health condition — such as diabetes, heart failure, or chronic lung disease. These plans are built around a beneficiary's particular condition, often with care coordination and benefits tailored to that condition's needs. Given Southeast Florida's older population and higher rates of chronic illness, this is a trend local beneficiaries are especially likely to notice — more plan options, and continued investment, in this space relative to traditional plans.

Rising medical costs continue to outpace what CMS (Medicare) pays plans.

Medical and prescription drug costs have been running well ahead of the annual payment increases CMS provides to insurers, which is a major reason benefit levels keep tightening industry wide. This dynamic isn't specific to Florida, but it's a big part of why "your plan looks different this year" has become such a common story nationally.

Not every plan is standing still, and not every plan is cutting back.

Some carriers are holding their core plans steadily while trimming elsewhere in their portfolio; others are pulling back more broadly or exiting certain markets entirely. There's no single story that applies to every plan or every carrier this year — which is exactly why reviewing your own ANOC carefully, rather than assuming last year's plan is unchanged, matters more than ever.

The bottom line for Southeast Florida beneficiaries: this remains one of the most plan-dense, competitive Medicare markets in the country, and that competition generally works in beneficiaries' favor — but with a nationwide wave of plan exits and PPO reductions this year, the differences between plans matter more than usual. Taking the time to compare your options this Annual Enrollment period, rather than auto-renewing by default (or returning to Original Medicare (Parts A and B only) because you didn’t read a termination letter that arrived in your mail, is worth the effort.

SOCIAL SECURITY COLA TO BE ANNOUNCED OCTOBER 14

The Social Security Cost-of-Living Adjustment (COLA) for 2027 will be announced October 14. According to the Senior Citizens League, the increase is currently expected to be around 3.5%, up from the 2.8% COLA applied for 2026. The final figure depends on September's CPI-W inflation data, which won't be available until just before the announcement, so this estimate could still shift.

CMS typically confirms the Medicare Part B premium, the Part A and B deductibles, and Part A coinsurance amounts in a press release each November, though no exact date has been announced yet.

Current projections (not yet official):

• Part B premium: approximately $209.50/month, up from $202.90 in 2026 (about a 3.25% increase)
• Part B deductible: approximately $310/year, up from $283 in 2026

These figures are based on the 2026 Medicare Trustees Report (June 2026) and are estimates only. Some analysts believe the actual numbers could land higher — in the $215–$219 range — based on how projections have historically undershot in past years.

Projected 2027 IRMAA thresholds (based on 2025 income) are expected to begin at approximately $112,000 for an individual filer and roughly double that for a married couple filing jointly. These figures will not be finalized until CMS's official announcement.

About Paul Cholak

Paul is a licensed, independent health and life insurance agent and has over forty years of benefits experience and specializes in helping Medicare beneficiaries obtain health insurance. However, he offers a complete array of life and health insurance products to individuals of all ages.

He guides Medicare beneficiaries through the steps of getting insurance and is available to help clients both BEFORE and AFTER they've made their purchase decision.

Disclaimer for Part C and D plans: "We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY: 1-877-2048) to get information on all your options."

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