Medicare Drug Plan Premiums Could Jump 50% in 2027—But Switching May Save Enrollees

October 30, 2026
Medicare Drug Plan Premiums Could Jump 50% in 2027—But Switching May Save Enrollees
  • A KFF analysis projects that average monthly premiums for stand-alone Medicare prescription drug plans will jump 50%, from $34 in 2026 to $51 in 2027. Enrollees can shop for a different plan during open enrollment, which ends Dec. 7, and may avoid much of the increase by switching.

  • The impact could be widespread: KFF estimates that 10.4 million people—76% of stand-alone plan enrollees without low-income subsidies—will pay higher premiums if they stay in their current plans. That includes 4.1 million people now in zero-premium plans, since none will be available among stand-alone plans in 2027.

  • KFF’s forecast is far steeper than the Centers for Medicare & Medicaid Services’ estimate, which puts the national average premium increase at just $35 to $36 in 2027. KFF said CMS did not explain its methods and may have assumed beneficiaries would move to cheaper plans; CMS did not immediately comment on the analysis.

  • KFF pointed to the early end of a federal subsidy pilot as one possible factor behind higher stand-alone premiums. The Centers for Medicare & Medicaid Services ended the three-year program after two years, and CMS Administrator Mehmet Oz called it an insurance-industry bailout.

  • Some beneficiaries are already looking for alternatives. Robert Travis Scott of Abingdon, Virginia, switched after learning his AARP-UnitedHealthcare premium would rise from $39.60 to $121.90 a month; he found a Humana plan with similar benefits for $19.30 and estimated he would save about $1,000 in 2027.

  • Premiums are only part of the expected cost increases: average annual drug deductibles are projected to rise from $540 to $643 for stand-alone plans and from $360 to $489 for Medicare Advantage drug coverage. Most enrollees will also face coinsurance, meaning they pay a percentage of a drug’s cost rather than a fixed copayment.

  • By comparison, people with drug coverage through Medicare Advantage are projected to pay an average of $9 a month for drugs in 2027, an increase of less than $2. More than half of Medicare beneficiaries use Medicare Advantage, while nearly 25 million have stand-alone drug plans and about 31 million get coverage through Medicare Advantage.

  • The projected increases come as President Donald Trump says his administration has secured lower drug prices, while affordability remains a voter concern ahead of the Nov. 3 midterm elections. Actual costs will vary depending on the medicines people use and their insurance coverage.

Summary based on 1 source


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