Medicare Advantage average monthly premiums will decline 16.5% in 2027, dropping from $14.37 in 2026 to $12.00 nationwide. Federal health administrators released the annual financial projections in Washington, confirming that millions of seniors will see lower baseline costs ahead of the fall enrollment window.
The Centers for Medicare and Medicaid Services announced that prescription drug costs built directly into Medicare Advantage plans will decrease even faster. Monthly drug premiums within these integrated policies will fall 38% after the application of plan rebates, dropping from $11.32 in 2026 to $7.00 in 2027.
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“CMS is fighting to keep high-quality care options affordable and accessible for the millions of beneficiaries who rely on Medicare Advantage and Part D prescription drug plans,” said CMS Administrator Mehmet Oz. He added that the administration is working to keep rates manageable while reducing federal outlays to private insurers.
Medicare Advantage key figures and enrollment dates for 2027
- Average Medicare Advantage monthly premium: $12.00 in 2027, down from $14.37 in 2026
- Average integrated Part D drug premium: $7.00 in 2027, down from $11.32 in 2026
- Average stand-alone Part D monthly premium: $36.00 in 2027, up from $35.09 in 2026
- Annual out-of-pocket prescription drug spending cap: $2,400 per person in 2027
- Total Medicare Advantage plan choices available nationwide: 5,532 options for 2027
- Open enrollment window: October 15, 2026 to December 7, 2026
- Effective coverage start date: January 1, 2027
Medicare Part D drug coverage and subsidy adjustments
Stand-alone prescription drug plans under Part D will see modest adjustments rather than sharp reductions. The national average monthly premium for stand-alone drug policies will rise by less than $1, shifting from $35.09 in 2026 to $36.00 in 2027. Federal officials noted that 88% of non-low-income beneficiaries will have access to a basic Part D option priced at $10.30 or less per month, while 93% can choose an enhanced Part D plan for less than $6.00 monthly.
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The shift follows significant regulatory changes to federal insurance subsidies. CMS confirmed the full termination of the voluntary Part D Premium Stabilization Demonstration, an interim pilot program that distributed $9.8 billion in temporary subsidies to private stand-alone drug insurers across 2025 and 2026. Agency officials decided to end the support mechanism heading into 2027, declaring that the private insurance marketplace has normalized following multiyear statutory reforms.
Statutory drug cost caps established under federal law will also adjust in the coming coverage year. The annual out-of-pocket cap on patient prescription drug spending will move to $2,400 in 2027. That threshold follows earlier statutory maximums set at $2,000 in 2025 and $2,100 in 2026, protecting enrollees who take high-cost medications from catastrophic pharmacy charges once their annual expenses reach the designated limit.
Medicare Advantage market access and supplemental benefit offerings
Access across private plan networks will remain broad throughout the United States. Federal data shows that more than 99% of all Medicare beneficiaries will have access to at least one Medicare Advantage option in their coverage county, while 97% will be able to select among 10 or more plan designs. Nationwide, insurers will offer approximately 5,532 individual Medicare Advantage choices, compared to 5,553 available during 2026.
CMS projects that total enrollment in Medicare Advantage will reach approximately 34 million individuals in 2027, which represents 47.4% of the total eligible Medicare population across the country. Supplemental benefits commonly bundled into these commercial managed-care plans, including routine dental care, vision checks, and hearing examinations, are scheduled to remain steady across participating insurance carriers without major service rollbacks.
Agency projections indicate that roughly eight out of every 10 Medicare Advantage members will be able to remain in their current coverage plan without seeing an increase in their monthly premium during 2027. However, independent policy researchers note that changes to plan formularies, networks, and deductibles can alter individual out-of-pocket calculations even when base premiums fall. Juliette Cubanski, a senior Medicare policy expert at KFF, pointed out that premium pressures could still emerge for selected demographics depending on carrier choices, observing that “they will all face higher premiums in 2027” within specific plan types.
How beneficiaries can compare 2027 Medicare plans
The formal Medicare open enrollment window for the 2027 plan year runs from October 15, 2026 through December 7, 2026. During this seven-week timeframe, individuals enrolled in Medicare can switch between traditional Medicare and Medicare Advantage, alter their Part D drug plans, or select an alternative private insurance carrier. Any coverage changes submitted by the December deadline take effect on January 1, 2027.
Consumers can evaluate plans using several official federal resources:
- Medicare Plan Finder: an online tool that allows users to review provider networks, drug formularies, deductibles, copayments, and monthly premiums side by side
- Identity access portals: accounts can be accessed through verified login credentials, including Login.gov, ID.me, and CLEAR
- Federal assistance hotline: support is available toll-free at 1-800-MEDICARE (1-800-633-4227), operating 24 hours a day, seven days a week
- Financial relief programs: low-income seniors can apply for Medicare Savings Programs, which help pay premiums and deductibles, or Extra Help, which subsidizes prescription drug expenses
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Beneficiaries who intend to keep their current Medicare arrangement without adjustments generally do not need to take action or submit paperwork during open enrollment, provided their chosen insurer continues offering that specific plan for 2027. Consumers are still encouraged to inspect annual notices of change mailed by carriers to ensure that their regular doctors, pharmacies, and maintenance prescription medications remain covered under existing network terms.
It remains unconfirmed whether final Medicare Advantage enrollment will hit the projected 34 million mark, as initial enrollment forecasts submitted by insurance plans have historically understated actual consumer uptake during open enrollment.
The annual open enrollment window closes on Monday, December 7, 2026, with the updated premium rates, out-of-pocket maximums, and benefit schedules taking effect on Friday, January 1, 2027.