Medicare 2026

Got a Blue or Tan Letter About Extra Help? Here's What It Means for Your 2027 Drug Coverage

If you qualify for Extra Help — the federal program that lowers what you pay for Medicare prescription drug coverage — you may find a colored envelope in your mailbox this fall. A blue letter or a tan letter from Medicare is not junk mail, and it is not a sales pitch. It is telling you something specific about your Part D drug plan for 2027, and in some cases it is telling you that Medicare will move you to a different plan on January 1 unless you choose one yourself first.

Here is how to read what you received and what your options are.

Why the mailings happen

Extra Help pays part or all of your Part D premium. The subsidy equals the lesser of your plan's basic drug premium or the "regional low-income premium subsidy amount" set each year by the Centers for Medicare & Medicaid Services (CMS). CMS released the 2027 regional amounts on July 28, 2026. When a plan's premium rises above that regional benchmark, people with Extra Help could end up owing the difference. The letters are how Medicare warns you in advance.

The blue letters (Reassignment Notices)

There are three versions, and each one is sent for a different reason.

Premium increase (CMS Product No. 11209). Your current drug plan will cost more than the regional low-income subsidy amount in 2027. If you do nothing by December 31, 2026, Medicare will automatically enroll you in a different plan on January 1, 2027 so your monthly premium stays at $0.

Plan termination (CMS Product No. 11208). Your current drug plan is leaving Medicare at the end of the year. Again, if you do not pick a new plan by December 31, Medicare will enroll you in one starting January 1.

Medicare Advantage Reassignment Notice. Your Medicare Advantage plan with drug coverage is leaving Medicare. If you do not join another Medicare Advantage plan with drug coverage or a stand-alone Part D plan by December 31, you will be moved to Original Medicare and automatically enrolled in a Part D plan on January 1. You will also get a window to buy a Medigap policy if you want one — more on that trade-off below.

If Medicare reassigns you, you will also receive a Reassign Formulary Notice. This is a plain comparison that tells you whether the new plan covers the drugs you filled in the past year. It is worth reading carefully; coverage, prior authorization, and pharmacy network rules vary plan by plan.

One technical note on the premium-increase letter: for 2027, CMS set the "de minimis" amount at $2. That means if a plan's premium is no more than $2 above the regional subsidy amount and the plan agrees to waive the difference, CMS will not reassign its Extra Help enrollees. In other words, you may stay put even if the premium technically crept a little above the benchmark.

The tan letter (LIS Choosers Notice, CMS Product No. 11267)

This one is mailed in early November and goes to people with Extra Help who picked their current drug plan themselves. Medicare does not auto-reassign people in this group. Instead, the letter tells you the plan's premium is changing and that you will owe part of the new premium in 2027 unless you move to a $0-premium plan. A list of $0-premium plans in your area is included. To have a new plan start January 1, 2027, enroll by December 7, 2026 — the end of Medicare's Annual Enrollment Period.

Your enrollment windows

Annual Enrollment runs October 15 through December 7, 2026, with new coverage effective January 1, 2027. This is the main window everyone uses.

Just as important: since 2025, people with Medicaid or Extra Help have a monthly Special Enrollment Period. You can generally switch stand-alone drug plans once per calendar month, with the change effective the first of the following month. (Exception: if your plan has flagged you as "at-risk" under a drug management program, that monthly SEP does not apply.) Full-benefit dual-eligible individuals can also join an integrated Dual Eligible Special Needs Plan (D-SNP) in any month. So if you are reassigned to a plan that does not cover your medications well, you have the flexibility to make another change later.

If you're weighing Medicare Advantage vs. Original Medicare + Medigap

If a Medicare Advantage Reassignment Notice is pushing you to decide, it helps to understand the trade-offs neutrally. Medicare Advantage plans typically bundle hospital, medical, and drug coverage, often with extra benefits, but use provider networks and plan-specific rules. Original Medicare with a Medigap policy and a stand-alone Part D plan generally lets you see any provider who accepts Medicare and offers predictable cost-sharing through the Medigap, but it is a separate set of pieces to manage and Medigap is medically underwritten in most situations outside of a guaranteed-issue right. Neither path is universally better; it depends on your doctors, prescriptions, travel habits, and budget.

A few 2027 program facts worth knowing

• The Part D out-of-pocket cap rises to $2,400 in 2027 (up from $2,100 in 2026).
• The maximum Part D deductible any plan may charge in 2027 is $700.
• The Part D base beneficiary premium for 2027 is $41.33 — a national figure used to calculate the late-enrollment penalty; actual plan premiums vary.
• Social Security announced a 3.6% cost-of-living adjustment for benefits payable beginning January 2027.
• The 2027 Part B standard premium and deductible and the 2027 IRMAA income brackets have not yet been announced; CMS typically releases them in the fall.

Where can you get help with Medicare questions?

For personalized answers — including confirming what notice you received, comparing drug plans, and checking whether your medications are covered — go to Medicare.gov or call 1-800-MEDICARE (1-800-633-4227), TTY 1-877-486-2048, 24 hours a day, 7 days a week.