Medicare Drug Plan Premiums Are Set to Rise Sharply in 2027

Average Part D premiums are expected to increase from $34 to $51 a month, though comparing plans during open enrollment could help reduce costs.

A new analysis shows that Medicare enrollees who purchase prescription drug coverage will face a 50% jump in average monthly premiums in 2027.

For millions of Americans enrolled in a stand-alone Medicare prescription drug plan, the average monthly premium is projected to reach $51 in 2027, up from $34 in 2026, according to KFF, a health policy nonprofit.

Comparing Plans Could Still Cut Costs

Even so, people in Medicare, the federal health program for adults 65 and older, may be able to find less expensive coverage by shopping around during open enrollment.

That plan-selection period runs through Dec. 7.

Premiums for stand-alone Medicare Part D prescription drug plans vary widely. KFF said that among eight national plans, average monthly premiums in 2027 will range from $6 to $204.

Those who choose Medicare Advantage plans, which bundle traditional Medicare and prescription drug coverage, can also find lower-cost choices. KFF said drug coverage included in Medicare Advantage plans will average about $9 a month in 2027, up $2 from this year.

About 25 million people were enrolled in a stand-alone Medicare Part D plan, while another 31 million were in a Medicare Advantage plan that included prescription drug coverage.

KFF’s projections are notably higher than estimates released by the Centers for Medicare and Medicaid Services before open enrollment began. CMS said the average monthly premium for stand-alone Part D drug plans would be $36 in 2027, or about $1 more than in 2026.

KFF said its estimates, based on June enrollment data, assume beneficiaries keep the same plan.

By contrast, CMS said its figures expected many people to switch plans in 2027.

KFF officials stressed that consumers should review their coverage carefully and make changes before open enrollment ends.

“They have an opportunity to switch to a lower-cost plan during open enrollment, but they have to take action if they want to see a lower premium,” said Juliette Cubanski, vice president and director of the program on Medicare policy for KFF.

Rising Medical Costs Are a Concern for Consumers

Older Americans on Medicare are likely to pay close attention to changes in monthly premiums when choosing coverage for the coming year.

Robert Lukas, 72, of Stony Point, New York, said he had long imagined retirement as a “secure and dignified time” in his life. But the retired U.S. Postal Service worker said the amount he spends on health coverage is putting pressure on his budget.

Along with Medicare coverage, Lukas pays about $920 a month for a supplemental plan for him and his wife that helps cover out-of-pocket costs Medicare does not pay. That monthly expense alone takes up 44% of an annuity he relies on for retirement income.

Even with that heavy cost, Lukas said he and his wife are “luckier than most to have the relative − and hopefully not fleeting − security we have.”

He said he worries about other seniors, as well as younger people, who are struggling to get by. Fewer than half of adults said they can afford health care, medical appointments and prescriptions, according to a June survey by West Health-Gallup.

“It’s everything,” Lukas said. “It’s health care but it’s also inflation. It’s the cost of living.”

What Older Americans Should Watch For

Higher average monthly premiums are not the only added cost Medicare enrollees may face for prescription drug coverage. KFF said consumers will also see deductibles of several hundred dollars in 2027.

The average deductible for a stand-alone plan will be $643 in 2027, up from $540 the previous year, KFF said. Medicare Advantage enrollees will face a somewhat lower average deductible for prescription drug coverage at $489 in 2027, up from $360 this year.

Most enrollees will pay more for brand-name drugs and another category known as non-preferred drugs in the coming year. KFF said that is because plans will charge coinsurance, or a percentage of the medication’s total cost, rather than copayments.

Trump administration officials previously argued that the Inflation Reduction Act raised prescription drug coverage costs. The 2022 climate and health care law set a $2,000 cap in 2025 on out-of-pocket Medicare prescription drug spending, and that cap rose to $2,100 in 2026.

The Trump administration ended a demonstration project that directed subsidies to insurance companies to help keep Medicare drug plan premiums lower. The project cost the federal government $9.8 billion in 2025 and 2026.