Medicare Drug Premiums Could Jump 50 Percent for Seniors: What to Know

Millions of Medicare beneficiaries may see sharply higher prescription drug plan premiums in 2027, making this year's open enrollment especially important for seniors who depend on stand-alone Medicare Part D coverage, experts say.

“The reality is that healthcare costs continue to rise, and insurers are facing pressure from higher medical expenses and changes in government payment policies,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “Those costs have to flow somewhere, and quite often they end up with the consumer as companies look to maintain profitability.”

According to a new KFF report, the average monthly premium for a stand-alone Medicare Part D prescription drug plan is expected to rise from $34 in 2026 to $51 in 2027, a 50 percent increase, assuming current beneficiaries keep their existing plans.

That would translate to about $204 more per year for the average enrollee who stays put.

Why It Matters

Prescription medications often represent a major cost for older adults, especially those on fixed incomes.

KFF found that about three-quarters of stand-alone Part D enrollees who do not receive low-income subsidies, or 10.4 million people, would face a higher monthly premium in 2027 if they remain in their current plans.

Among eight national stand-alone Part D plans reviewed by KFF, projected average monthly premiums for 2027 ranged from about $6 to $204. Centene's Wellcare Value Script Rx is expected to have the lowest average premium at $6.50 a month, while United's AARP Medicare Rx Preferred is projected to average $204.50 per month.

That makes plan comparisons during open enrollment especially important, since people who simply let their current coverage renew could end up paying much more.

What To Know

The 50 percent increase refers specifically to KFF's estimate for stand-alone prescription drug plans, or PDPs, which are bought by people who generally get their medical coverage through Original Medicare.

KFF estimates that the enrollment-weighted average premium for those plans will reach $51 a month in 2027, up from $34 in 2026, if current enrollees keep the same coverage.

“Shopping around for the best plan may cost you some time, and it can ultimately save you some real money. While average Medicare Advantage premiums are projected to decline, that doesn't mean your overall healthcare costs will follow,” Thompson said.

“Deductibles, out-of-pocket expenses, and provider networks can change significantly. Seniors need to look beyond the monthly premium and understand what their total healthcare costs may look like.”

Drug coverage through Medicare Advantage looks very different. The average monthly Part D premium for Medicare Advantage prescription drug plans is projected to be about $9 in 2027, compared with $51 for stand-alone plans.

However, KFF's numbers differ sharply from those of the Centers for Medicare & Medicaid Services.

CMS projected an average stand-alone Part D premium of about $36 per month for 2027, roughly $1 above its 2026 estimate. KFF said one possible reason for the gap is that CMS may assume some beneficiaries move to cheaper plans, while KFF's $51 figure reflects what happens if existing members keep their current coverage.

Why Are Medicare Part D Premiums Rising?

The higher premiums have largely been linked to the end of a temporary federal program created to stabilize stand-alone Part D premiums while insurers adjusted to major changes under the Inflation Reduction Act.

The Centers for Medicare & Medicaid Services announced in July that the Part D Premium Stabilization Demonstration would end after 2026. The program had provided extra financial support to stand-alone plans after Part D changes shifted more prescription drug costs onto insurers.

In 2025, the program cut the base beneficiary premium by $15 and capped a plan's year-over-year premium increase at $35. In 2026, the subsidy was reduced to $10 and the maximum premium increase was raised to $50. KFF estimated that the program lowered average monthly stand-alone Part D premiums by $26 in 2025 and $16 in 2026.

Still, CMS said insurers now have enough experience with the redesigned Part D benefit to prepare their 2027 bids and that the market can return to more traditional conditions.

Other Medicare Drug Costs Are Increasing

Premiums are not the only Part D cost moving higher.

For 2027, Part D plans may charge a deductible of up to $700, up from $615 in 2026. KFF estimates that nearly all stand-alone Part D enrollees, or 99.8 percent, will be in plans with a deductible if they keep their current coverage.

The average deductible for stand-alone Part D enrollees is projected to rise from $540 in 2026 to $643 in 2027. For people with drug coverage through Medicare Advantage, it is expected to increase from $360 to $489.

What Can Seniors Do To Lower Medicare Drug Costs?

Beneficiaries do not have to accept the premium increase tied to their current plan.

Medicare's annual open enrollment period runs from October 15 through December 7, giving beneficiaries a chance to compare Part D and Medicare Advantage coverage for 2027. Any changes take effect January 1.

Experts say this year is especially important. More than 4 million people now enrolled in zero-premium stand-alone drug plans will have to pay a premium in 2027 if they stay in their current coverage because no $0-premium stand-alone PDPs will be available next year for this group, according to KFF.

Thompson said this is likely only the “tip of the iceberg as it comes to healthcare affordability.”

“We're already seeing insurers exit certain markets and reduce plan offerings,” Thompson said. “As competition shrinks in those areas, consumers could face fewer choices, reduced benefits, and potentially higher out-of-pocket costs over the long term.”

What Happens Next

Medicare beneficiaries have until December 7 to make changes during the open enrollment period.

For people enrolled in stand-alone prescription drug plans, reviewing the 2027 premium, deductible, formulary and pharmacy network could save them significant money instead of letting coverage renew automatically.