Millions of older Americans could see lower monthly prices on their private Medicare plans in 2027 while those who have a stand-alone prescription drug plan could see monthly premiums increase less than $1, according to the Centers for Medicare & Medicaid Services.
CMS said the average monthly premium for stand-alone part D prescription drug plans will be $36 in 2027, up less than $1 from $35.09 in 2026.
Monthly premiums for Medicare Advantage plans, which combine medical and prescription drug coverage, will be an average $12 in 2027, down from $14.37 in 2026, CMS said.
Insurers that offer privately administered Medicare Advantage plans and Part D prescription drug plans must notify Medicare enrollees by Sept. 30 about changes to monthly premiums,
prescription drug coverage and provider networks. Enrollees can change plans during Medicare open enrollment, which runs from Oct. 15 through Dec. 7 for coverage that begins Jan. 1, 2027.
“Every year, it's good to take stock and assess whether your plan is still meeting your needs or whether there's a better option out there," said John Brooks, director of Medicare at CMS. "The stability of the marketplace and the lower cost for most beneficiaries suggests that beneficiaries should have good options heading into this enrollment season.”
CMS said about eight in 10 Medicare Advantage enrollees will be able to keep their current plan with the same or a lower premium in 2027.
CMS said 97% of Medicare enrollees will have access to 10 or more Medicare Advantage plan options. The total number of Medicare Advantage plans offered nationwide remained stable at 5,553 in 2026 and 5,532 in 2027.
CMS did not immediately say what percentage of Medicare Advantage enrollees are in a plan that won't be offered in 2027.
Medicare experts said it's important for enrollees to scrutinize their plan offering to make sure it still meets their needs. Some Part D plans might seek to reduce costs by trimming drug formularies, the list of prescription drugs a plan will cover for enrollees.
Consumers find Medicare Advantage plans appealing because the monthly premium can be inexpensive, said Juliette Cubanski, vice president and director of the program on Medicare policy for KFF, a health policy nonprofit.
"Insurers may be bending over backward to try and keep premiums as low as possible," Cubanski said. "Other changes underneath the hood is the coverage they offer. If they need to decrease costs, that might come in the form of higher cost sharing for prescription drugs or reducing the number of prescription drugs they cover."
In July, CMS announced it would end a Medicare prescription drug plan subsidy implemented by the Biden administration to lower prices because of changes ushered in by the 2022 Inflation Reduction Act.
As of February, about 25 million people were in a stand-alone Medicare Part D plan, which is often paired with traditional government-run Medicare insurance. Another 31 million were in a Medicare Advantage plan − Medicare plans administered by a private insurance company that typically include prescription drug coverage.
Trump administration officials previously said the Inflation Reduction Act increased costs for prescription drug coverage. The climate and health care law imposed a $2,000 cap in 2025 on what Medicare enrollees paid out of pocket for prescription drugs. That cap increased to $2,100 in 2026.
Under the Biden administration, CMS created a "demonstration project" that steered subsidies to insurance companies to keep premiums lower. The project cost the federal government $9.8 billion in 2025 and 2026.
Drug-pricing pundits said eliminating the Biden administration's demonstration project could send Part D prices higher in 2027.
In a news release, CMS said there are "encouraging signs that, as expected, the Part D program is returning to normal market conditions."
This article originally appeared on USA TODAY: Medicare unveils 2027 rates for private Medicare, Part D plans
