2027 CMS Medicare Advantage & Part D Advance Notice Explained for Agents

The Centers for Medicare & Medicaid Services (CMS) released the 2027 Medicare Advantage and Part D Advance Notice, offering early insight into how Medicare plans may evolve in the coming years.

While the policies are not final, this update helps agents understand where Medicare Advantage (MA) and Part D are heading, and how to prepare their businesses accordingly.

The table below provides the expected average impact of the proposals on MA payment components relative to last year.   

Year-to-Year Percentage Change 

¹ Rebasing/re-pricing impact is dependent on finalization of the average geographic adjustment index and will be available with the publication of the CY 2027 Rate Announcement. 

² Change in Star Ratings reflects the estimated effect of changes in the Quality Bonus Payments for the upcoming payment year.

³ The impact of the update to the normalization factors for MA risk adjustment is not shown in the fact sheet separately because there is considerable interaction between the impact of the MA risk adjustment model updates and the normalization factor update. Therefore, the combined impact is shown in the fact sheet. If CMS did not update the risk adjustment model the impact of normalization would be -1.50%.

⁴ This row shows the average impact of the exclusion of diagnoses from unlinked chart review records on risk scores.

 ⁵ The total does not include an adjustment for underlying coding trend in MA. For CY 2027, CMS expects the MA risk scores to increase, on average, by 2.45% due to the underlying coding trend.

Key Takeaways for Medicare Agents

1. CMS Signals Stability in Medicare Advantage and Part D

The 2027 Advance Notice reflects a continued focus on gradual change and program stability, rather than abrupt shifts.

Why this matters for agents:

• Fewer unexpected benefit disruptions for clients

• More consistent annual review conversations

• Stronger long-term client retention opportunities

This favors agents who emphasize education and ongoing service, not one-time enrollments.

2. Medicare Advantage Continues to Be a Priority

CMS remains committed to Medicare Advantage as a core part of the Medicare program.

Agent implications:

• Medicare Advantage plans are not being phased out

• Carrier competition on benefits and experience will continue

• Plan knowledge and proper client matching are increasingly important

Agents who understand plan design details will have a competitive advantage.

3. Ongoing Focus on Quality and Member Experience

CMS continues to emphasize value-based care, quality performance, and member outcomes.

For agents, this means:

• Greater plan differentiation beyond premiums and extra benefits

• Increased importance of setting accurate client expectations

• Higher retention when clients are placed in appropriate plans

Strong needs analysis remains essential.

4. Part D Coverage Remains a Critical Discussion

Prescription drug coverage continues to evolve, and CMS is focused on sustainability and member protections within Part D.

What agents should prioritize:

• Annual medication reviews

• Clear explanations of formularies and coverage rules

• Helping clients understand cost and coverage trade-offs

Proactive Part D guidance builds trust and reduces confusion during AEP.

How Agents Should Prepare Now

Agents do not need to make immediate changes, but should focus on:

• Staying current with carrier and CMS updates

• Refining their Medicare plan review process

• Using education-first marketing approaches

• Preparing clients early for annual reviews

Agents who track policy direction are better positioned when final rules are released.

Final Thoughts

The 2027 Medicare Advantage and Part D Advance Notice points to refinement, not disruption.

CMS is reinforcing a Medicare environment that rewards:

• Compliance

• Education

• Long-term client relationships

Agents who focus on clarity and client-centric guidance will be well aligned with the future of Medicare plans.

View CMS Fact Sheet