FRONT PORCH MONEY · Issue #2
Good morning. Medicare open enrollment runs through December 7. Here's what's changing with your drug costs, in four minutes.
THE BIG ONE: Your drug costs in 2027
What changed: The yearly cap on what you pay for covered Part D drugs rises from $2,100 to $2,400. That's $300 more at the top. The highest deductible a plan can charge goes from $615 to $700.
There's good news, too. Medicare negotiated lower prices on 15 brand-name drugs, starting January 1.
The list includes Ozempic, Wegovy, Trelegy Ellipta and Xtandi. The agency that runs Medicare expects people to save about $685 million out of pocket in 2027.
What it means for your check: If you take many medicines, your yearly maximum rises $300. If you take one of the 15 drugs, your cost may go down. Your plan's rules still decide what you pay.
Monthly premiums should hold steady for most people. The average stand-alone drug plan goes up less than $1, from $35.09 to about $36 a month. Your own plan's premium may be different.
What to do: See the full list of 15 drugs. Then compare plans with your own prescriptions before December 7.
RATE WATCH
The best safe yields we found this week. The full table comes every Saturday.
Safe yield | Best this week | Where |
|---|---|---|
Online savings | Peak Bank (online), no minimum balance, as of Oct. 20 | |
1-year CD | E*TRADE (online), $0 minimum, as of Oct. 20 | |
6-month Treasury bill | TreasuryDirect or a brokerage, as of Oct. 19 | |
5-year fixed annuity | Athene (AM Best A+), on $100,000 or more, as of Oct. 19. Insurance product, not a bank deposit, not FDIC-insured. |
Savings and CD rates as of October 20, 2026; T-bill yield (coupon equivalent) as of October 19, 2026; annuity rate as of October 19, 2026. Rates change often, so check before you open anything. Annuities aren't bank deposits and aren't FDIC-insured.
ONE SMART MOVE: Read the letter your plan sent in September
Your plan mails an "Annual Notice of Change" each September. It lists changes to your costs and coverage that start in January.
Read it this week. Look for changes to your premium, your deductible and your drugs. If you can't find it, call your plan and ask.
SCAM WATCH: The fake "Medicare" site at the top of your search
On September 28, the Federal Trade Commission warned that health insurance scams pick up during open enrollment. Some use web addresses that look like Medicare.gov. Others pay to appear at the top of search results.
Those links can lead to plans that aren't real health insurance, or to stolen personal information.
How to spot it: Skip results marked "Ad" or "Sponsored." Check that the web address ends in .gov. Or call Medicare at 1-800-633-4227.
Also remember: Plans and agents can't call you unless you're a member or gave permission. They can't come to your home uninvited, either.
ASK FRONT PORCH
A question we hear a lot: "Can I leave my Medicare Advantage plan and go back to Original Medicare?"
Yes. You can switch during open enrollment, October 15 to December 7. Your new coverage starts January 1.
If you're already in Medicare Advantage, you get another chance from January 1 to March 31.
The catch is Medigap, the supplement policy for Original Medicare. Its open enrollment lasts six months, starting the month you're 65 and have Part B.
After that, there's no federal guarantee an insurer will sell you a policy. It may also cost more because of your health. Your state may offer more options.
Before you switch, get free, unbiased help from 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.
— The Front Porch Money team
Front Porch Money isn't affiliated with Medicare, Social Security, the IRS or any government agency.
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.
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