CMS says Medicare Part D premiums will stay stable in 2027, with the average stand-alone premium rising just 91 cents. Here is why that national average may look nothing like your own bill, and what to check before open enrollment.
Medicare Part D 2027: CMS Just Announced the New Premium Numbers
Medicare Part D 2027 Premiums Are Stable, But Your Plan May Not Be
CMS just released a reassuring headline about Medicare in 2027. It says Medicare Advantage and prescription drug programs are expected to remain stable.
But the same 2027 plan data also shows the regular $0 stand-alone Part D plan is gone, and some familiar plans are nearly doubling. If you read our earlier update on the disappearing $0 Part D plan, you may wonder how both stories can be true.
They can. And the gap between them may matter much more than the national average when your own plan notice arrives.
What CMS Announced About 2027 Part D Premiums
The September 28 announcement leads with a very small change. The projected average monthly premium for a stand-alone Part D plan rises from $35.09 in 2026 to $36 in 2027. That is an increase of just 91 cents.
CMS also says:
- 88% of beneficiaries without the low-income subsidy will have access to a basic stand-alone plan costing $10.30 a month or less.
- 93% of beneficiaries will have access to an enhanced Part D plan costing less than $6 a month.
That is genuinely encouraging. It suggests the overall market avoided the across-the-board premium shock some people feared when a temporary federal stabilization program ended.
Why the National Average Is Not Your Price
An average describes the whole market. It does not predict the price of the plan you already have. CMS is answering a question about the market overall. The notice in your mailbox answers a very different question about your household.
Think of it like rents in a neighborhood. The average rent can barely change because plenty of inexpensive apartments are still available. Meanwhile, one familiar building doubles its rent, another closes, and the last free unit disappears.
The neighborhood average is stable. But the person opening a much larger bill does not feel stability at all. That is how the word “stable” can be accurate and still feel completely wrong at the kitchen table.
Low-Cost Plans Remain, But the $0 Plan Is Gone
The 2027 Part D landscape looks a lot like that neighborhood. The current CMS files still contain plenty of low-premium options. In most states, the least expensive regular stand-alone premium is $5.30 a month.
But the regular $0 stand-alone plan shown in the 2026 landscape is gone from the current 2027 file. Counting each plan once across the states and Washington, D.C., the number of distinct stand-alone offerings falls from 360 to 316.
Some Familiar Part D Plans Rise Much More Than 91 Cents
Across Medicare’s 34 drug-plan regions, the median listed premium for AARP Medicare Rx Preferred rises from about $121 a month to about $205. AARP Medicare Rx Saver rises from about $64 to about $124.
Those are regional medians, not a quote for every person enrolled. Still, they show how a calm national average can sit on top of a painful change in one plan.
Worked Example: What a $60 Jump Costs Over a Year
Say you budgeted around a premium near $64 a month, and your 2027 notice shows about $124. That is about $60 more each month. Over 12 months, it adds up to roughly $720 more, before you fill a single prescription.
What Is Happening Underneath Part D Premiums
The national average amount insurers bid to provide the basic Part D benefit rises from $239.27 in 2026 to $296.05 in 2027. That is about a 24% increase.
The national base beneficiary premium rises much less, from $38.99 to $41.33. That is because federal law limits growth in that base figure to 6% a year through 2029.
Those numbers sound like they should move together, but they don’t. The base premium is part of a financing formula. It is not a 6% cap on what your own plan can charge.
The Part D Premium Stabilization Program Is Ending
The temporary Part D Premium Stabilization Demonstration ends after 2026. CMS says insurers now have enough experience with the redesigned drug benefit to return to normal market conditions. You can read more in our article on the end of the Medicare Part D subsidy.
The administration argues that a temporary program should not turn into billions of dollars in ongoing support for insurance companies. Government auditors estimate the program cost $6.2 billion in 2025 and $3.6 billion in 2026.
Two Sides, Both Using Real Numbers
Someone defending the change can point to the projected $36 average and say the transition worked. Someone opening a notice with a large increase can point to that bill and say it did not work for them.
Both are looking at real numbers. One measures whether affordable options still exist across the market. The other asks whether people can keep familiar coverage at anything close to the price they expected.
Medicare Advantage Drug Premiums vs. Stand-Alone Part D
Medicare Advantage adds another layer. CMS projects the average drug premium inside Medicare Advantage plans, after rebates are applied, to fall from $11.32 in 2026 to $7 in 2027.
Stand-alone Part D plans do not have the same medical-plan rebate dollars to lower their drug premium. So comparing a stand-alone drug plan with a Medicare Advantage plan is not a simple apples-to-apples premium comparison.
Provider networks, prior authorization, medical benefits, Medigap access, and total yearly costs all belong in that decision.
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Part D Costs Beyond the Monthly Premium
The standard Part D deductible can rise from $615 in 2026 to $700 in 2027. The yearly out-of-pocket threshold for covered Part D drugs rises from $2,100 to $2,400.
Once your qualifying spending reaches that threshold, you pay nothing more for covered drugs for the rest of the year. Your premiums do not count toward that $2,400 amount.
Negotiated Drug Prices Pull the Other Way
One 2027 change actually lowers costs. Negotiated Medicare prices for 15 more high-spending Part D drugs take effect on January 1. CMS estimates those prices will save beneficiaries about $685 million out of pocket in 2027.
That means you could pay more for the insurance premium and less for a medicine affected by negotiation. Medicare drug costs are not all moving in the same direction. For the bigger picture, see seven Medicare changes for 2027 that could affect your costs.
Extra Help Can Still Mean a $0 Premium
Extra Help remains a major exception. If you qualify, you can still have a $0 plan premium and a $0 deductible in 2027, even though the regular $0 stand-alone premium has disappeared.
That is not a contradiction. One number is the plan’s ordinary published price. The other is what an eligible person pays after the low-income subsidy is applied.
If your income or savings might qualify you, check instead of assuming the answer is no. CMS says people enrolled in a Medicare Savings Program automatically qualify for Extra Help. Free help is also available through your State Health Insurance Assistance Program (SHIP) and by calling 1-800-MEDICARE.
How to Check Your Own 2027 Part D Costs
Start with your Annual Notice of Change, not the national average. Then work through this checklist:
- Find the premium your current plan will charge in 2027.
- Check that every medicine you take is still covered, and which tier it is on.
- Confirm the pharmacy you use is still preferred.
- Look for coinsurance, prior authorization, quantity limits, and step therapy.
A plan with a $5 premium can cost more over the year than a plan with a $50 premium if your prescriptions land on expensive tiers.
Use Medicare Plan Finder During Open Enrollment
Medicare Open Enrollment runs from October 15 through December 7. In Medicare Plan Finder, enter the exact drug, dose, quantity, and pharmacies you actually use.
Compare the estimated total yearly cost, not just the monthly premium. Save or print the results so you can compare plans side by side.
If you are thinking about switching between Medicare Advantage and Original Medicare, slow down and look at the medical side too. In some situations, getting a Medigap policy later can depend on timing, health questions, and state rules.
What This Means for You
The CMS release is good news for the market as a whole. Average premiums are not projected to surge, low-cost choices remain widely available, and the feared broad collapse did not happen.
But stable does not mean unchanged. It does not mean your plan will rise by only 91 cents. And it does not mean the plan that worked for you in 2026 will still be your best choice in 2027.
Frequently Asked Questions
What is the average Medicare Part D premium for 2027?
CMS projects the average monthly premium for a stand-alone Part D plan will be $36 in 2027, up from $35.09 in 2026. That is an increase of 91 cents.
If premiums are stable, why did my plan go up so much?
The average covers the whole market, including many low-cost plans. Individual plans can still rise sharply. For example, the median premium for AARP Medicare Rx Saver rises from about $64 to about $124 across Medicare’s drug-plan regions.
Are there any $0 Part D plans in 2027?
The regular $0 stand-alone Part D plan is gone from the current 2027 CMS data. People who qualify for Extra Help can still have a $0 premium and a $0 deductible.
Why are Medicare Advantage drug premiums lower?
Medicare Advantage plans can use rebate dollars to lower their drug premium, which CMS projects will average $7 in 2027. Stand-alone Part D plans do not have those rebates, so the premiums are not a direct comparison.
What are the Part D deductible and out-of-pocket limit for 2027?
The standard deductible can be up to $700, and the out-of-pocket threshold for covered drugs is $2,400. Premiums do not count toward the $2,400.
When can I change my Part D plan?
Medicare Open Enrollment runs from October 15 through December 7. Changes you make take effect January 1.
Key Takeaway
The useful question is not whether Medicare Part D is stable in general. It is whether your prescriptions, in your plan, at your pharmacy, will still fit your budget next year.
- Read your Annual Notice of Change for your plan’s actual 2027 premium.
- Compare total yearly cost in Plan Finder, not just the monthly premium.
- Check Extra Help and Medicare Savings Programs before assuming you don’t qualify.
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Disclosure: We may receive a referral from Chapter if you choose to use their service. Chapter is a licensed health insurance agency and is not affiliated with or endorsed by Medicare or any government agency.
Money Instructor provides educational information only and does not offer medical, insurance, tax, legal, or financial advice. Medicare plan premiums, drug coverage, Extra Help rules, and program details can change and may not apply to your situation. CMS figures described here are projections and averages, not a quote for any individual plan. Please review your plan’s Annual Notice of Change, check Medicare.gov, and talk with a licensed advisor, your plan, or your local SHIP before making coverage decisions.
