The Centers for Medicare & Medicaid Services announced that Medicare Advantage premiums are projected to fall 16.5% in 2027, with the weighted average monthly premium decreasing from $14.37 in 2026 to $12.00. The agency also projects that prescription drug premiums for Medicare Advantage plans will drop 38%, from $11.32 to $7 per month.
For stand-alone prescription drug coverage under Medicare Part D, average premiums are projected to increase less than $1, rising from $35.09 to $36 per month. According to the CMS, 88% of non-low-income beneficiaries will have access to a basic Part D plan costing $10.30 or less per month, and 93% will have access to an enhanced plan for less than $6 per month.
The CMS projects that enrollment in Medicare Advantage will reach 34 million people in 2027, representing approximately 47.4% of all Medicare enrollees. More than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan, and 97% will have access to 10 or more options.
The agency said the premium reductions follow the narrowing of the Part D Premium Stabilization Demonstration for 2026 and its planned discontinuation in 2027, which it described as a return to normal market conditions.
Medicare's annual Open Enrollment period runs from October 15 through December 7, 2026. The CMS encourages beneficiaries to review their coverage options using the Medicare Plan Finder tool at Medicare.gov, which allows comparison of 2027 plans, premiums, and benefits.
People with limited income and resources may qualify for Medicare Savings Programs, which can help pay Medicare premiums and cost-sharing amounts, or Extra Help, a federal program that assists with Part D prescription drug costs.