Medigap News 2027: Rate Changes, Policy Updates & What’s New This Open Enrollment

If you already understand the basics of Medigap coverage, this guide is for the layer above that: what’s actually changing in the Medigap market right now, heading into the 2027 plan year. From rate hikes to a real bill in Congress to a shifting Medicare Advantage landscape sending more seniors back to Original Medicare, here’s what’s happening and what it means for you.

Medigap Rates Are Rising Faster Than Usual

Medigap premiums don’t have a national cap the way Part B does, and 2026 brought some of the steepest rate increases the market has seen in years. Actuarial data tracking six large carriers found Plan G rate increases ranging from roughly 12% to 26%, a sharper jump than the 13% seen in 2025 and far above the 5% increases typical just a few years earlier. Carriers point to rising healthcare utilization among seniors and healthcare inflation running well above general inflation as the main drivers, and nothing in the current trend suggests 2027 will bring a quieter year. For the full state-by-state breakdown and how to shop around it, see Medigap Premium Increases for 2027: Which States and Carriers Are Seeing the Biggest Hikes.

Is Plan F Coming Back? The Close the Medigap Act

A bill introduced in Congress, the Close the Medigap Act of 2025, would reverse the 2020 rule that closed Plan F and Plan C to new Medicare beneficiaries, restoring access to first-dollar coverage. The bill also includes new broker transparency requirements, forcing Medigap issuers to report payments made to agents and brokers. As of this writing the bill has not passed, and beneficiaries newly eligible for Medicare still cannot enroll in Plan F. We track this closely in Is Medigap Plan F Coming Back? What Congress Is (and Isn’t) Considering.

More States Are Adopting Birthday Rule Laws

A growing number of states now give Medigap policyholders an annual window to switch plans or carriers without medical underwriting, often called a “birthday rule” or “anniversary rule.” New Mexico is the newest state to adopt this protection, with legislation enacted in 2026 creating a birthday rule window that takes effect in 2027, joining states like Nevada, California, Oregon, and Missouri that already have some version of this right. See the full list of states and their specific rules in Medigap Birthday Rule States 2027.

Medicare Advantage Star Rating Trouble Is Pushing Seniors Toward Medigap

The average Medicare Advantage star rating has been essentially flat for two years running, but underneath that flat headline number, many individual plans have seen ratings fall below the 4-star threshold that triggers bonus payments from CMS—and insurers facing that revenue loss are increasingly cutting supplemental benefits or raising premiums to protect margins. Major carriers including UnitedHealthcare, Humana, and Aetna have also reduced the number of states and counties they serve. As Medicare Advantage becomes less predictable, more sicker or higher-utilizing beneficiaries are returning to Original Medicare and shopping for Medigap. The full picture is in Medicare Advantage Star Rating Cuts Are Pushing More Seniors to Medigap.

The New $2,400 Part D Cap Changes the Medigap Math

Medicare’s Part D coverage gap, the old “donut hole,” is permanently gone thanks to the Inflation Reduction Act. In its place is a hard annual out-of-pocket cap on covered prescription drugs, which rises from $2,100 in 2026 to $2,400 in 2027. Because Medigap never covered drug costs directly, this cap changes the overall math for anyone weighing Medigap-plus-Part-D against Medicare Advantage. Read the Medigap-specific breakdown in Medigap and the New $2,400 Part D Cap.

Scam Alert for This Open Enrollment

Regulators have flagged a rise in Medicare-related scam calls and texts heading into recent enrollment seasons, with callers posing as “Medicare agents” or “eligibility specialists” to extract personal information. Supplemental coverage scams specifically target Medigap and Part D shoppers with promises of unusually cheap plans. See our full breakdown of red flags and protective steps in Medigap Fraud Alerts: Scams to Watch for During Open Enrollment 2027.

Other CMS Rule Changes Worth Knowing

CMS finalized a Medicare Advantage star ratings overhaul in 2026 that sends billions of additional dollars to insurers and reverses several Biden-era health equity provisions. CMS also considered, but did not finalize, a special enrollment period for enrollees affected when providers leave their Medicare Advantage network — an idea regulators said they’d revisit in future rulemaking. For the full rundown of regulatory changes affecting Medigap shoppers specifically, see New CMS Rules Affecting Medigap Shoppers This Year.