Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027
The Centers for Medicare & Medicaid Services (CMS) today announced significant premium savings for millions of Medicare beneficiaries in 2027, with weighted average MA premiums projected to fall more than 16% from 2026 to 2027, and average prescription drug premiums in Medicare Advantage projected to plummet 38%.
Additionally, average premium for stand-alone Part D prescription drug plans is projected to rise by less than $1 per month in 2027. Despite speculation and misleading reports related to the appropriate sunsetting of the Part D Stabilization Demonstration Project, there is broad pricing stability across the Part D market.
The strong 2027 outlook means Medicare beneficiaries will continue to have access to affordable coverage and broad plan choice without relying on billions of dollars in temporary subsidies to insurance companies. More than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage Plan, while 97% will have access to 10 or more options.
CMS is releasing this key information ahead of the upcoming Medicare Open Enrollment, which runs from October 15, 2026, through December 7, 2026.
“CMS is fighting to keep high-quality care options affordable and accessible for the millions of beneficiaries who rely on Medicare Advantage and Part D prescription drug plans,” said CMS Administrator Dr. Mehmet Oz. “By slashing handouts to big insurance companies, CMS is keeping premiums stable while ensuring that 97% of Medicare beneficiaries have access to 10 or more MA plans and that 93% of non-low-income beneficiaries can get an enhanced Part D plan for less than $6 a month. We urge beneficiaries to use Open Enrollment as an opportunity to review their coverage, compare options, and pick the plan that best suits their needs and budget.”
Medicare Advantage
The weighted average monthly premium across all MA plans, including plans with prescription drug including plans with prescription drug coverage and Special Needs Plans, is projected to decrease from $14.37 in 2026 to $12.00 in 2027, a decline of 16.5%. Supplemental benefit offerings, including hearing, dental, and vision benefits, are expected to remain stable.
Based on plan projections, enrollment in MA is estimated to be 34 million in 2027, representing approximately 47.4% of all people enrolled in Medicare. Plan enrollment projections have historically understated actual enrollment, and CMS expects actual 2027 MA enrollment to again be more robust than current plan projections indicate.
Access to MA plans remains broad in 2027, with more than 99% of Medicare beneficiaries having access to at least one MA plan, and 97% having access to 10 or more MA plan choices. The total number of available MA plans nationally is expected to remain relatively stable, changing from 5,553 in 2026 to approximately 5,532 in 2027. Beneficiaries will continue to have a wide range of choices, and approximately eight in 10 MA beneficiaries will be able to remain in their current plan with the same or a lower premium in 2027.
Medicare Part D
CMS is committed to keeping prescription drug coverage affordable for people with Medicare while preserving beneficiary choice and access and safeguarding taxpayer dollars. There are encouraging signs that, as expected, the Part D program is returning to normal market conditions following the narrowing of the voluntary Part D Premium Stabilization Demonstration for CY 2026 and its planned discontinuation in 2027.
The total average monthly Part D premium for stand-alone prescription drug plans is projected to increase less than $1, from $35.09 in 2026 to $36 in 2027. 88% of non-low-income beneficiaries will have access to a basic Part D plan that is $10.30 or less, and 93% of non-low-income beneficiaries will have access to an enhanced Part D plan at less than $6.
For MA plans that include prescription drug coverage, after application of MA rebates, the average monthly Part D total premium is projected to decrease from $11.32 in 2026 to $7 in 2027, a decrease of $4.32 or 38%.
Medicare Open Enrollment Resources
Medicare Open Enrollment begins October 15, 2026, and ends December 7, 2026. During this time,
people with Medicare can compare 2027 coverage options at Medicare.gov. The Medicare Plan Finder
allows beneficiaries to compare Medicare health and drug plans, including premiums, costs, benefits,
and other coverage information. Because plan costs and benefits can change from year to year, CMS
encourages beneficiaries to review their current coverage and compare their options for 2027.
CMS continues to improve the user experience on Medicare.gov and the Medicare Plan Finder to help people with Medicare compare their options and make informed decisions. Since the last Open Enrollment period, users can now sign in to Medicare accounts more securely using Login.gov, ID.me and CLEAR®, and easily find and save providers to help them compare plans. Starting in October, users will be able to review more details about preventive services offered by health plans, easily connect from Medicare.gov to important plan documents like formularies and Summary of Benefits, and see clear, prominent messages about changes impacting their current plans in 2027.
Beneficiaries can also call 1-800-MEDICARE for help comparing plans and costs. 1-800-MEDICARE is available 24 hours a day, seven days a week, to provide help. People who want to keep their current Medicare coverage generally do not need to re-enroll.
People with limited income and resources may also qualify for programs that help lower their Medicare costs. Medicare Savings Programs (MSP) may help pay Medicare premiums and may also pay deductibles, coinsurance, and copayments for eligible individuals. Learn more at: www.medicare.gov/basics/costs/help/medicare-savings-programs.
Extra Help is a Medicare program that helps qualifying individuals pay Part D premiums, deductibles, coinsurance, and other costs. Individuals who enroll in MSP automatically qualify for Extra Help. Learn more at: Medicare.gov/extrahelp.
To view premiums and costs for 2027 MA and Part D plans, visit: www.cms.gov/medicare/coverage/prescription-drug-coverage, and select the 2027 landscape source file under “Downloads.”
For state-by-state information, important dates, and enrollment resources for MA and Part D in 2027, visit: https://www.cms.gov/files/document/2027-medicare-advantage-part-d-landscape-state-state-fact-sheets.pdf.
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