Federal officials posted lower average Medicare Advantage premiums for 2027 and a slight Part D increase after ending a costly Biden-era drug subsidy that ran nearly $10 billion.
The Centers for Medicare & Medicaid Services released average monthly premium figures for privately run Medicare Advantage plans and stand-alone Part D prescription drug plans, giving seniors the first clear look at next year’s private Medicare market before open enrollment begins.
USA TODAY reported that CMS put the 2027 average Medicare Advantage premium at $12 a month, down from $14.37 in 2026. Stand-alone Part D premiums will average $36, up less than a dollar from $35.09 this year.
About eight in 10 Medicare Advantage enrollees will be able to keep their current plan at the same or a lower premium in 2027, CMS said. Ninety-seven percent of Medicare enrollees will have access to 10 or more Medicare Advantage options. The nationwide count of those plans slips only slightly, from 5,553 in 2026 to 5,532 in 2027.
As of February, roughly 25 million people were in a stand-alone Part D plan and another 31 million were in Medicare Advantage. Insurers must notify enrollees by Sept. 30 of changes to premiums, drug coverage, and provider networks. Open enrollment runs Oct. 15 through Dec. 7 for coverage that starts Jan. 1, 2027.
In July, CMS announced it would end a Medicare prescription drug plan subsidy the Biden administration had put in place as a demonstration project. The agency tied the decision to changes from the 2022 Inflation Reduction Act. That project cost the federal government $9.8 billion in 2025 and 2026.
The same law imposed a $2,000 out-of-pocket cap on what Medicare enrollees paid for prescription drugs in 2025. The cap rose to $2,100 in 2026. Trump administration officials had previously said the Inflation Reduction Act increased costs for prescription drug coverage.
A CMS news release described “encouraging signs that, as expected, the Part D program is returning to normal market conditions.”
John Brooks, director of Medicare at CMS, framed the moment as a chance for beneficiaries to shop carefully.
Brooks said:
"Every year, it's good to take stock and assess whether your plan is still meeting your needs or whether there's a better option out there. The stability of the marketplace and the lower cost for most beneficiaries suggests that beneficiaries should have good options heading into this enrollment season."
Average premiums are only part of the story. Juliette Cubanski, vice president and director of the Medicare policy program at KFF, a health policy nonprofit, noted why many consumers like Medicare Advantage in the first place: the monthly premium can look inexpensive.
She also warned that insurers under pressure to hold premiums down may shift costs elsewhere.
Cubanski said:
"Insurers may be bending over backward to try and keep premiums as low as possible. Other changes underneath the hood is the coverage they offer. If they need to decrease costs, that might come in the form of higher cost sharing for prescription drugs or reducing the number of prescription drugs they cover."
CMS did not immediately say what share of Medicare Advantage enrollees are in a plan that will not be offered in 2027. That gap matters. A lower sticker price means little if a preferred doctor leaves the network or a needed drug drops off the formulary.
The calendar is fixed. Notices are due by the end of September. Shopping runs mid-October through early December. Coverage locks in on New Year’s Day 2027. CMS is pitching marketplace stability and lower costs for most beneficiaries. The agency also closed a Biden-era subsidy that burned through $9.8 billion in two years and said Part D is moving back toward normal market conditions.
Seniors still have to do the work. Compare the premium. Check the drug list. Confirm the doctors and hospitals. A cheaper monthly bill that raises copays or narrows coverage is not a bargain. Taxpayers already paid nearly $10 billion to prop up premiums under the last administration’s demonstration project. The cleaner market test is whether plans deliver real value without another round of federal props.
Stable averages and a smaller government thumb on the scale are welcome. They still do not replace a hard look at what each plan actually covers.