CMS projects lower Medicare Advantage and Part D premiums for 2027

The Centers for Medicare & Medicaid Services (CMS) expects Medicare Advantage and Medicare drug coverage to stay stable in 2027, with average Medicare Advantage premiums falling and stand-alone drug plan premiums nearly flat.

What CMS projects for 2027

• Medicare Advantage premiums. The average monthly premium across Medicare Advantage plans is projected to fall from $14.37 in 2026 to $12.00 in 2027, a 16.5% decrease.
• Stand-alone drug plans. The average monthly premium is projected to rise by less than $1, from $35.09 in 2026 to $36 in 2027.
• Drug coverage inside Medicare Advantage. The average Part D portion of the premium is projected to fall from $11.32 to $7, a 38% decrease.
• Plan choice. About 5,532 Medicare Advantage plans are expected in 2027, compared with 5,553 in 2026. CMS says more than 99% of beneficiaries will have access to at least one plan and 97% will have 10 or more options.
• Enrollment. CMS projects about 34 million people in Medicare Advantage, or 47.4% of all Medicare beneficiaries.
• Extra benefits. Supplemental benefits such as dental, vision and hearing are expected to remain stable.

What a low premium does and does not tell you

A $0 or low monthly premium does not mean a plan is free. With Medicare Advantage you still pay the Medicare Part B premium, and you may pay deductibles, copays, and coinsurance up to the plan out-of-pocket maximum. Networks and drug formularies can change every year, so review your plan's Annual Notice of Change before October 15.

Open enrollment: the Medicare Annual Enrollment Period runs October 15 to December 7, 2026.

Source: CMS press release, September 28, 2026. Last reviewed October 2, 2026.