Medicare Advantage premiums are projected to fall 16.5% in 2027, while average premiums for standalone Medicare Part D plans are expected to rise by less than $1 per month, from $35.09 in 2026 to $36 in 2027, the Centers for Medicare & Medicaid Services said Monday.
Premiums And Choices
CMS said the weighted average monthly Medicare Advantage premium is projected to decline from $14.37 in 2026 to $12 in 2027. For Medicare Advantage plans that include prescription drug coverage, the average monthly Part D premium is projected to fall about 38%, from $11.32 in 2026 to $7 in 2027.
More than 99% of Medicare beneficiaries are expected to have access to at least one Medicare Advantage plan in 2027, while 97% will have access to at least 10 choices. About eight in 10 Medicare Advantage beneficiaries are expected to be able to remain in their current plan with the same or a lower premium.
The announcement comes ahead of Medicare Open Enrollment, which runs from Oct. 15 through Dec. 7. Beneficiaries can use Medicare.gov to compare 2027 premiums, costs, benefits, and coverage options.
Oz Highlights Changes
On Tuesday, in a post on X, the CMS shared a video featuring CMS Administrator Dr. Mehmet Oz and John Brooks, Director of the Center for Medicare, discussing the 2027 changes. Oz highlighted the projected 16% Medicare Advantage premium decline and said standalone Part D plans would see an average increase of “less than a dollar.”
In the press release, CMS Administrator Dr. Mehmet Oz said, “CMS is keeping premiums stable,” while urging beneficiaries to review their coverage and compare their options during Open Enrollment.
The announcement follows CMS’ July decision to end the Part D Premium Stabilization Demonstration after the 2026 plan year, a move that had raised questions about potential 2027 drug-premium increases.
CMS said on Tuesday that 93% of non-low-income beneficiaries will have access to an enhanced Part D plan costing less than $6 a month in 2027.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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