Medicare’s 2027 drug plan data is out, and the regular $0 stand-alone Part D premium is gone. Learn what is changing, why some familiar plans nearly doubled, and how Extra Help can still bring your premium and deductible to $0.
JUST IN: Medicare Part D 2027 Prices Are Out — Check Your Plan Now
Medicare Part D 2027 Premiums: The $0 Drug Plan Is Gone, Except for One Group
If you buy your own Medicare Part D drug plan, pay close attention to the next notice from your insurer. Don’t glance at it and toss it in a pile.
Medicare’s newly released 2027 plan data shows a big change. The regular $0 stand-alone Part D premium has disappeared. In 2026, there were 68 different zero-premium offerings. In the current 2027 CMS data, there are none.
CMS says these numbers can still change as contracts are finalized. But this is the agency’s current 2027 plan file, and the change is striking. There is also one big exception: people who qualify for Extra Help may still pay $0.
What Changed for Stand-Alone Part D Plans in 2027
This change is about stand-alone prescription drug plans. These are the plans many people buy alongside Original Medicare. It does not mean every Medicare Advantage plan with drug coverage suddenly has a separate drug premium.
In the 50 states and Washington, D.C., the current CMS data shows 360 unique stand-alone offerings for 2026 and 316 for 2027. That is about a 12% drop. There are fewer stand-alone plans overall, and no regular $0 premium left among them.
The Cheapest Part D Premium Depends on Your State
In much of the country, the lowest premium is still fairly low. Here is where the cheapest regular stand-alone plan starts in the current 2027 file:
- 44 states and Washington, D.C.: $5.30 a month (Wellcare Value Script)
- Hawaii: $10.30 a month
- Connecticut, Massachusetts, Rhode Island, and Vermont: $13.30 a month
- New York: $37.30 a month
So when you hear a national average Part D premium, remember that it may have little to do with the number that shows up in your mailbox.
Some Popular Medicare Drug Plans Nearly Doubled
Some increases are nowhere near $5. Across Medicare’s 34 drug-plan regions, the median premium for AARP Medicare Rx Preferred from UnitedHealthcare goes from about $121 a month in 2026 to about $205 in 2027.
The AARP Medicare Rx Saver plan goes from a median of about $64 to about $124. These are regional medians, so not everyone pays exactly those amounts. But the direction is clear.
In Oklahoma, the Preferred plan rises from $121 to $208. In Kansas, it rises from $147 to $264.50. That is not a small annual adjustment. It is the kind of change people notice right away.
Watch for a New Premium Bill You Might Miss
At the other end, a $5 premium can sound like nothing. The real risk may not be the amount. It may be that this is a bill you are not used to paying.
If your plan used to cost $0, you may not be looking for a premium notice at all. You may assume everything is still automatic. If that small bill keeps going unpaid, your coverage can eventually be put at risk.
Even if your plan goes from $0 to just a few dollars, find out how the plan expects you to pay. Then make sure your payment setup is actually working.
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Why Part D Premiums Are Rising in 2027
A big part of the story goes back to the Part D redesign that started in 2025. It gave people a major new protection: a hard yearly limit on what they pay out of pocket for covered drugs. For people who take very expensive medications, that was a huge change.
The other side of the redesign is that the insurers running Part D had to take on more of the financial risk. CMS knew that could push premiums up sharply while insurers adjusted to the new system.
So in 2025, CMS created a temporary premium stabilization program, and it continued a smaller version in 2026. Think of it as a cushion under the market. That cushion goes away after 2026. You can read more about that decision in our article on the end of the Medicare Part D subsidy.
Two Sides of the Debate
CMS says insurers now have enough experience with the redesigned benefit to price plans under more normal market conditions. The extra support also cost taxpayers billions of dollars.
Critics say that cushion kept people from getting hit with much bigger premium increases while insurers figured things out. Ending it also does not explain every price increase. Drug prices, expensive specialty medicines, and growing use of some high-cost drugs all matter too.
One thing is clear, though. A mechanism that helped hold down the bill people could see is going away, and more of the underlying cost pressure is now showing up.
Insurer Bids Rose About 24%
You can see that pressure in the bids insurers submitted. The national average monthly bid to provide the basic Part D benefit rises from $239.27 for 2026 to $296.05 for 2027. That is roughly a 24% increase.
Meanwhile, the national base beneficiary premium rises from $38.99 to $41.33, only about 6%. That 6% limit applies to a national financing formula. It does not mean your own plan can only go up 6%. Your premium can rise much more than that.
Part D Costs Beyond the Premium: Deductible and Out-of-Pocket Cap
The premium is only one part of what you spend. In 2027, the standard Part D deductible can be as high as $700, up from $615.
The yearly out-of-pocket threshold for covered Part D drugs rises from $2,100 to $2,400. Once your qualifying spending reaches that point, you pay nothing for covered Part D drugs for the rest of the year. Your monthly premiums do not count toward that $2,400, so your total spending for the year can still end up higher.
Worked Example: Premium vs. Total Yearly Cost
Say you reach the $2,400 out-of-pocket cap in 2027 and your plan premium is $50 a month. Your premiums add $600 for the year ($50 × 12). Because premiums do not count toward the cap, your total drug spending for the year would be about $3,000, not $2,400.
Some Drug Costs Are Going Down
Not every Medicare drug cost is going up. Starting January 1, negotiated prices take effect for 15 more high-spending Part D drugs. About 5.3 million Part D enrollees used those drugs in 2024.
CMS projects about $685 million in out-of-pocket savings for beneficiaries in 2027 under the standard benefit. So you could pay more for the insurance itself while paying less for one of your medications. For a wider look, see seven Medicare changes for 2027 that could affect your costs.
The $0 Exception: Extra Help for Part D
This is the part not to miss. Medicare says Extra Help can bring your plan premium and deductible down to $0 in 2027.
With Extra Help, the standard maximum copays are $5.80 for a generic drug and $14.40 for a brand-name drug. Once total qualifying drug costs reach $2,400, covered Part D drugs cost nothing for the rest of the year. In the current CMS data, every one of Medicare’s 34 drug-plan regions has at least one stand-alone plan with a $0 low-income premium.
Extra Help Income and Resource Limits
Don’t hear the words “low income” and decide this has nothing to do with you. Medicare’s current 2026 limits for most applicants are:
- One person: $23,940 in yearly income and $18,090 in resources
- Married couple: $32,460 in yearly income and $36,100 in resources
These are not the confirmed 2027 limits yet. Your home and one car do not count as resources, and the income limits are higher in Alaska and Hawaii.
You May Already Qualify Automatically
You may qualify automatically if you have full Medicaid, if your state pays your Part B premium through a Medicare Savings Program, or if you receive Supplemental Security Income. Otherwise, you can apply through Social Security.
If you checked before and did not qualify, don’t assume that answer lasts forever. Your income may have changed after retirement, your savings may be different, or you may have lost a spouse. Medicare says you can reapply when your situation changes, and your local SHIP program can give you free, unbiased help.
How to Compare Medicare Drug Plans for 2027
Start with your Annual Notice of Change, but don’t stop at the premium. Use this checklist:
- Enter every medication you take into Medicare’s Plan Finder, including the exact version and dose.
- Check that each drug is covered.
- Look at the deductible, copays or coinsurance, and prior authorization rules.
- Check what the plan charges at the pharmacies you actually use.
A plan with a $5.30 premium can cost you more over the whole year than a $50 plan if your medications are on expensive tiers or your pharmacy is not preferred. The cheapest premium does not automatically mean the cheapest coverage.
Make Sure Your Plan Is Coming Back
SilverScript Choice appears in 33 drug-plan regions in the 2026 data but only 20 in the current 2027 data, and it disappears from California. For some people, the question is not “How much more will I pay?” It is “Do I need a completely different plan next year?”
Open Enrollment Dates
Medicare Open Enrollment runs from October 15 through December 7, and new coverage begins January 1.
If you are thinking about moving between Medicare Advantage and Original Medicare, drug coverage is only one piece of that decision. Medigap rules can be a separate issue, and access to a policy can depend on your circumstances and where you live. Don’t make a much bigger Medicare decision based on one drug premium alone.
What This Means for You
If you had a $0 stand-alone Part D plan, you will likely have a premium in 2027. It might be a few dollars, or it might be much more. Either way, you need to know the amount and how to pay it.
If your plan’s premium jumped, you are not stuck with it. Open Enrollment is your chance to compare the full yearly cost of other plans based on the drugs you actually take. And if your money is tight, Extra Help may still get you to $0.
Frequently Asked Questions
Are there any $0 Medicare Part D plans in 2027?
In the current 2027 CMS data, there are no regular $0-premium stand-alone Part D plans, down from 68 offerings in 2026. People who qualify for Extra Help can still get their premium and deductible down to $0. CMS says the data can still change as contracts are finalized.
What is the cheapest Part D premium for 2027?
In 44 states and Washington, D.C., the lowest regular stand-alone premium is $5.30 a month. It is $10.30 in Hawaii, $13.30 in Connecticut, Massachusetts, Rhode Island, and Vermont, and $37.30 in New York.
What is the Part D deductible for 2027?
The standard Part D deductible can be as high as $700 in 2027, up from $615 in 2026. The out-of-pocket cap for covered drugs rises to $2,400.
Do Part D premiums count toward the $2,400 cap?
No. Your monthly premiums do not count toward the $2,400 out-of-pocket threshold. That means your total yearly spending can be higher than $2,400.
Who qualifies for Extra Help?
Under Medicare’s current 2026 limits, most single applicants qualify with up to $23,940 in yearly income and $18,090 in resources. For married couples, the limits are $32,460 and $36,100. Your home and one car don’t count, and you may qualify automatically with full Medicaid, a Medicare Savings Program, or SSI.
When can I change my Medicare drug plan?
Medicare Open Enrollment runs from October 15 through December 7. Changes you make take effect January 1.
Key Takeaway
In the current 2027 CMS data, the regular $0 stand-alone Part D plan is gone. But $0 did not disappear for everybody, and the cheapest premium is not automatically the cheapest coverage.
- Read your Annual Notice of Change, and make sure a new bill doesn’t go unpaid.
- Compare the full yearly cost based on the prescriptions you actually take.
- Check Extra Help, even if you were turned down before.
This year, doing nothing may be the most expensive option.
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Every Medicare situation is different. Our partner Chapter Medicare offers free one-on-one help from licensed advisors who can compare options based on your doctors, prescriptions, and budget.
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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 limits, and program rules can change and may not apply to your situation. CMS says 2027 plan data can still change as contracts are finalized. 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.
