Medicare Advantage Premiums to Fall in 2027 While Part D Edges Up: What to Check Before Open Enrollment

Lower average premiums sound like good news, but the plan details matter more than the headline number.

What happened

On Monday, Sept. 28, the Centers for Medicare & Medicaid Services (CMS), the federal agency that runs Medicare, released its first look at 2027 premiums for private Medicare plans.

Here are the main numbers from CMS:

• Medicare Advantage: The average monthly premium is expected to fall 16.5%, from $14.37 in 2026 to $12.00 in 2027.
• Stand-alone Part D drug plans: The average monthly premium is expected to rise by less than $1, from $35.09 to $36.
• Drug coverage inside Medicare Advantage plans: The average drug premium is expected to fall from $11.32 to $7 a month.

USA Today reported the same figures.

A quick Medicare refresher

Medicare Advantage (also called Part C) plans are sold by private insurance companies. They bundle hospital and doctor coverage, and often drug coverage, into one plan. Many have low or zero monthly premiums but use networks of doctors and charge copays.

Part D is prescription drug coverage. People on Original Medicare often buy a stand-alone Part D plan to cover their medications.

A premium is the monthly price of a plan. It is only one part of your total cost. Deductibles, copays and which drugs a plan covers can matter just as much.

More key details

CMS said:

• About 34 million people are expected to be in Medicare Advantage in 2027, about 47.4% of everyone on Medicare.
• More than 99% of people on Medicare will have access to at least one Medicare Advantage plan, and 97% will have 10 or more to choose from.
• About 8 in 10 current Medicare Advantage members can stay in their plan with the same or a lower premium.

CMS Administrator Dr. Mehmet Oz said the agency is working to keep care options affordable and available for people who rely on Medicare.

Look under the hood

Lower premiums don't always mean lower costs. Juliette Cubanski, a Medicare policy expert at KFF, told USA Today that insurers can make other changes to the coverage they offer, such as higher cost-sharing for drugs or fewer drugs on a plan's list. That list is called a formulary.

CMS Medicare Director John Brooks told USA Today that it's a good idea to take stock every year and check whether your plan still meets your needs.

What this means for your wallet

Watch your mailbox. USA Today reported that plans must notify members of changes for next year by Sept. 30. This letter is called the Annual Notice of Change. It lists changes to premiums, copays, covered drugs and networks.

Mark your calendar. Medicare open enrollment runs from Oct. 15 to Dec. 7, 2026. During this window, you can switch Medicare Advantage plans, switch Part D plans, or move between Original Medicare and Medicare Advantage. Changes take effect Jan. 1.

Compare total costs, not just premiums. A plan with a $0 premium could cost you more over a year if your drugs have high copays or your doctors are out of network. The official Medicare Plan Finder tool on Medicare.gov lets you enter your prescriptions and compare estimated yearly costs.

Free help is available. Free, unbiased counseling is available through your State Health Insurance Assistance Program (SHIP). Adult children helping parents can sit in on these sessions too.