Medicare Part D

Fairbanks Medicare: Two Paths for 2027

FAIRBANKS, Alaska — If you're turning 65 or reviewing coverage this fall, you're really choosing between two ways of getting your Medicare benefits. One path keeps you on Original Medicare and lets you add a Medigap policy and a stand-alone Part D drug plan. The other path is Medicare Advantage, where a private insurer delivers your Part A, Part B, and usually Part D in a single plan.

Two paths, one Medicare

Neither path is universally better. They're built differently, and the right fit depends on your health, your budget, how often you travel, and which doctors you want to keep. Here's how to think it through.

Path 1: Original Medicare + Medigap + Part D

Original Medicare is the federal program — Part A (hospital) and Part B (doctor and outpatient). You can see any provider in the U.S. that accepts Medicare, and you don't need referrals.

Because Original Medicare has deductibles and coinsurance with no yearly out-of-pocket limit, many people add a Medigap (Medicare Supplement) policy to help cover those cost-sharing gaps. Medigap plans are standardized by letter (Plan G, Plan N, and so on), so a Plan G from one company covers the same core benefits as a Plan G from another.

Original Medicare doesn't include prescription drugs, so most people on this path also enroll in a stand-alone Part D plan.

One important note about Medigap: you get your strongest buying rights during your six-month Medigap Open Enrollment Period, which starts when you're 65 and enrolled in Part B. After that window, insurers in most states can consider your health history.

Path 2: Medicare Advantage (Part C)

Medicare Advantage plans are offered by private insurers approved by Medicare. When you enroll, you still have Medicare — but the plan manages your Part A and Part B benefits, and typically bundles in Part D.

These plans usually use networks (HMO or PPO) and may require referrals or prior authorization for certain services. They must cap your annual in-network out-of-pocket spending for Part A and B services, which Original Medicare alone does not.

Fairbanks is in Fairbanks North Star Borough, and plan availability — how many Medicare Advantage or Part D plans are offered, and by which carriers — is set at the county level. To see what's actually available where you live, use the Plan Finder at Medicare.gov or call 1-800-MEDICARE.

What's changing for 2027

A few program-level facts apply no matter which path you choose:

• Part D out-of-pocket cap: $2,100 in 2026 and $2,400 in 2027. Once your covered drug spending hits that limit, you pay nothing for covered drugs the rest of the year.
• Part D maximum deductible: $615 in 2026 and $700 in 2027 (plans can set theirs lower).
• The old "donut hole" is gone as of 2025. Part D now has three phases: deductible, initial coverage, and catastrophic.
• Medicare Prescription Payment Plan: an optional, no-interest way to spread your drug costs across the calendar year in monthly payments. You can opt in through your Part D or Medicare Advantage plan.
• IRMAA: higher-income beneficiaries pay extra for Parts B and D. In 2026, surcharges begin above $109,000 in income for a single filer.

How to think about the choice

A few practical questions to work through:

• Doctors and hospitals. Are your providers in-network with the Advantage plans in your area? If you split time between Fairbanks and the Lower 48, unrestricted access under Original Medicare may matter more.
• Predictability vs. flexibility. Medigap plans usually have higher monthly premiums but very predictable out-of-pocket costs. Medicare Advantage plans often have lower premiums but variable copays and network rules.
• Prescriptions. Check every drug you take against a plan's formulary before you enroll. Formularies change yearly.
• Extras. Some Advantage plans include dental, vision, or hearing benefits. Medigap does not — those would be separate policies.
• Switching later. Moving from Advantage back to Original Medicare + Medigap is allowed, but outside your initial windows, Medigap insurers in most states can use medical underwriting. Plan the entry point carefully.

Key dates to remember

• Annual Enrollment Period: October 15 – December 7. You can join, switch, or drop a Medicare Advantage or Part D plan for the following year.
• Medicare Advantage Open Enrollment Period: January 1 – March 31. If you're already in an Advantage plan, you can switch to another Advantage plan or return to Original Medicare (and pick up a Part D plan).