CMS projects a roughly 16–16.5% drop in the weighted average Medicare Advantage premium for 2027 — from $14.37 to $12.00 — while standalone Part D premiums are expected to rise by less than $1, to $36.00. Part D premiums inside Medicare Advantage plans are forecast to fall about 38% to roughly $7. More than 99% of beneficiaries should have access to at least one MA plan and 97% to at least 10 options. Open Enrollment runs Oct. 15–Dec. 7; beneficiaries should compare plans at Medicare.gov.
Big Drop Ahead: Medicare Advantage Premiums Projected To Fall ~16% In 2027; Part D Largely Stable, CMS Says
Mehmet Oz speaks into a microphone at a podium with a US flag and a Dr. Oz U.S. Senate sign in the background. (Credit: Image via Shutterstock)
The Centers for Medicare & Medicaid Services (CMS) said Monday that average Medicare Advantage (MA) premiums are projected to fall sharply in 2027 while most standalone Medicare Part D prescription‑drug plans will see only a minimal increase.
Key Projections for 2027
CMS estimates the weighted average monthly Medicare Advantage premium will decline from $14.37 in 2026 to $12.00 in 2027 — a reduction of roughly 16–16.5%. At the same time, the average premium for standalone Medicare Part D plans is expected to rise by less than one dollar per month, from $35.09 in 2026 to $36.00 in 2027.
For Medicare Advantage plans that include prescription‑drug coverage, CMS projects the average monthly Part D premium to drop by about 38%, from $11.32 to roughly $7.00 in 2027.
Access, Choice, And What It Means For Beneficiaries
- More than 99% of Medicare beneficiaries are expected to have access to at least one Medicare Advantage plan in 2027.
- 97% of beneficiaries are projected to have access to at least 10 MA choices.
- About 80% of current Medicare Advantage enrollees are expected to be able to remain in their existing plan with the same or a lower premium.
- Approximately 93% of non–low‑income beneficiaries should have access to an enhanced Part D option costing under $6 per month in 2027.
"CMS is keeping premiums stable," said CMS Administrator Dr. Mehmet Oz in the agency's press release, urging beneficiaries to review and compare plans during Open Enrollment.
CMS published a short video on social media featuring Dr. Mehmet Oz and John Brooks, Director of the Center for Medicare, highlighting the 2027 changes and reiterating that the expected rise in standalone Part D premiums is "less than a dollar."
Policy Context
The announcement follows CMS' July decision to end the Part D Premium Stabilization Demonstration after the 2026 plan year — a program change that had prompted concerns about possible 2027 drug‑premium increases. Despite that change, CMS projects substantial savings for many beneficiaries in 2027, especially in MA plans that include drug coverage.
What Beneficiaries Should Do Now
Medicare Open Enrollment runs from Oct. 15 through Dec. 7. Beneficiaries should compare premiums, formularies, coverage rules, and out‑of‑pocket costs at Medicare.gov to determine whether switching plans would lower costs or improve coverage.
Data and projections cited are from CMS' October 2026 announcement. Beneficiaries should verify final plan details in the fall benefit listings.
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