ANN ARBOR – Michigan seniors are about to hear a lot about rising Medicare Part D premiums next year.

But healthcare experts say they’re looking at the wrong number.

The biggest financial risk for many retirees in 2027 may not be paying an extra $10 or $20 a month in premiums. It could be choosing—or automatically renewing—the wrong Medicare prescription drug plan and paying hundreds, or even thousands, of dollars more for the medications they take every day.

That warning comes after the Trump administration announced it will end a temporary federal subsidy that helped keep Medicare Part D premiums lower following major changes to the program under the Inflation Reduction Act. While some beneficiaries are expected to see modest premium increases next year, experts say the premium is only one part of what determines a person’s total prescription drug costs.

For Michigan’s approximately 2.2 million Medicare beneficiaries, the announcement is an important reminder that this year’s Medicare Open Enrollment period may be one of the most important in recent memory.

The Premium Isn’t The Whole Story

Many retirees naturally compare Medicare drug plans by looking at the monthly premium.

Healthcare counselors say that’s a mistake.

Every year Medicare Part D plans can change:

  • Which prescription drugs they cover.
  • How much they charge for those drugs.
  • Annual deductibles.
  • Copayments and coinsurance.
  • Pharmacy networks.
  • Mail-order discounts.

A plan with a slightly higher monthly premium may actually save hundreds of dollars over a year if it offers better coverage for the medications a beneficiary takes.

Conversely, the plan with the lowest premium could become the most expensive choice if a commonly used prescription drug moves to a higher pricing tier, requires prior authorization, or is removed from the insurer’s preferred formulary.

Nearly 900,000 Michigan Seniors May Need To Take A Closer Look

Michigan has roughly 2.2 million Medicare beneficiaries.

Based on national enrollment patterns, an estimated 850,000 to 900,000 Michigan residents receive prescription drug coverage through stand-alone Medicare Part D plans rather than Medicare Advantage plans.

Those beneficiaries are the most likely to notice changes when insurers release their 2027 plans later this year.

National estimates suggest many stand-alone Part D enrollees could see premium increases ranging from less than $10 per month to roughly $20 per month after the federal stabilization program expires. But experts caution that premiums alone don’t determine what beneficiaries ultimately spend on prescription medications.

Why Shopping Around Matters

One of the biggest mistakes Medicare beneficiaries make is allowing their current prescription drug plan to renew automatically every year.

That approach may work when plans change very little.

But insurance companies regularly update their formularies, pricing structures and pharmacy networks. As a result, the plan that provided the best value this year may no longer be the best option in 2027.

Someone taking medications for diabetes, heart disease, arthritis or cancer could find that another Part D plan offers substantially lower out-of-pocket costs—even if its monthly premium is slightly higher.

Likewise, a retiree who focuses only on finding the lowest monthly premium could discover after Jan. 1 that annual deductibles, higher copays or changes in prescription coverage more than offset any premium savings.

What Michigan Seniors Should Compare

Experts recommend evaluating the total annual cost of a Medicare drug plan rather than simply comparing premiums.

Items to review include:

  • Monthly premium.
  • Annual deductible.
  • Whether every prescription medication remains covered.
  • Drug pricing tiers.
  • Copays and coinsurance.
  • Preferred pharmacy discounts.
  • Mail-order pricing.
  • Estimated total annual out-of-pocket costs.

The Medicare Open Enrollment period runs from Oct. 15 through Dec. 7, allowing beneficiaries to change prescription drug plans before new coverage takes effect Jan. 1.

Questions To Ask Before You Renew

Before selecting a Medicare Part D plan this fall, healthcare advisors recommend asking:

  • Are all of my current prescriptions still covered?
  • Have any of my medications moved to a more expensive pricing tier?
  • Is my preferred pharmacy still considered in-network?
  • Will my deductible increase?
  • What will my total prescription costs be over the next year—not just my monthly premium?

For many Michigan retirees living on fixed incomes, spending a few hours comparing plans during Open Enrollment could save hundreds of dollars over the coming year.

Final Medicare Part D premiums and benefit details for 2027 are expected to be released before this fall’s Open Enrollment period.

MITechNews will follow up with Michigan healthcare experts, AARP Michigan and the Michigan Medicare Assistance Program to help readers understand how to compare plans and avoid unexpected prescription drug costs.