FRONT PORCH MONEY · Issue #5
Good morning. Medicare open enrollment ends December 7. That's 32 days from today. Here's a closer look at Medicare Advantage costs, in four minutes.
THE BIG ONE: Medicare Advantage premiums dip for 2027
What changed: The average Medicare Advantage premium falls from $14.37 to $12.00 a month in 2027. That's $2.37 less a month, a drop of about 16.5%. About 8 in 10 people in these plans can keep their plan at the same or a lower premium.
What it means for your check: At the average, $2.37 a month is about $28 a year. But the plan premium is only one cost. You still pay the Part B premium, which is $202.90 a month in 2026. Medicare hasn't posted the 2027 Part B amount yet.
Your plan's deductible, copays and coinsurance can matter more than the premium. Every plan also has a yearly limit on what you pay for covered Part A and Part B services. Once you reach it, you pay nothing more for covered services that year.
What to do: Look up your plan's yearly limit and copays, not just the premium. Then compare plans with your own doctors and drugs before December 7. Changes start January 1.
Compare plans at Medicare.gov (https://www.medicare.gov/plan-compare/)
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RATE WATCH
The best safe yields we found this week. The full table comes every Saturday.
Safe yield | Best this week | Where, and as of |
|---|---|---|
Online savings | About $427 a year on $10,000 (4.27% APY) | Peak Bank (online), $100 to open. As of Nov. 3. |
1-year CD | About $465 a year on $10,000 (4.65% APY) | CFG Bank (online), $500 minimum. No minimum: E*TRADE, 4.55% APY. As of Nov. 2. |
6-month Treasury bill | About $429 a year on $10,000 (4.29%) | TreasuryDirect or a brokerage. As of Nov. 2. |
5-year fixed annuity (MYGA) | About $605 a year on $10,000 (6.05%) | Athene, rated A+ by AM Best, $100,000 minimum. As of Nov. 2. Insurance product, not a bank deposit, not FDIC-insured. |
Dollar figures are about one year's interest on $10,000. Rates change often, so check before you open anything. We skip short-term promotions. Annuities aren't bank deposits and aren't FDIC-insured.
ONE SMART MOVE: Call your doctors before you pick a plan
Medicare Advantage plans use networks. Each plan lists its doctors in a provider directory on its website, or it can mail you one.
Directories aren't always right. On Oct. 16, Medicare proposed rules to make them more accurate. Those are only proposals, so they won't help with this year's choice.
So this week, call your main doctor's office. Ask if they'll be in your plan's network next year. Do the same for any specialist you see often.
SCAM WATCH: The "you won" call from a fake charity
The FTC warned about this one on Oct. 26. Scammers pretend to be well-known charities, or use names that sound like them.
How it works: They say you won a charity sweepstakes because you donated. They reach you by phone, social media ads or search ads. Then they ask for a fee, or your Social Security number, to "claim" the prize.
How to spot it: Real sweepstakes are free. In the FTC's words, "The moment someone tells you to pay to claim your prize, you know you're dealing with a scam." Caller ID can be faked, too.
What to do: Never pay to get a prize. Look up the charity yourself, with words like "complaint" or "scam." Report it at ReportFraud.ftc.gov.
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ASK FRONT PORCH
A question we hear a lot: "My Medicare Advantage plan has a $0 premium. Do I still pay for Part B?"
Yes. You still have to pay the Part B premium. In 2026, the standard amount is $202.90 a month. It can be more if your income is higher.
Some $0 plans help pay all or part of your Part B premium. Check your plan's papers, or call the plan, to see if yours does.
For free, unbiased help, call your State Health Insurance Assistance Program (SHIP) at 877-839-2675.
That's it for today. Hit reply and send us your biggest money question. We read every one. Front Porch Money isn't affiliated with Medicare, Social Security or any government agency.
— The Front Porch Money team
Front Porch Money is general education, not personal financial, tax, legal or investment advice. Some links are from partners who may pay us; see our disclosures.