Why your Medicare drug plan costs will be higher in 2027 - USA Today
Medicare enrollees who buy prescription drug plans will see average monthly premiums rise 50% in 2027, a new analysis shows.
The average monthly premium for millions of Americans enrolled in a Medicare stand-alone prescription drug plan will be $51 in 2027, up from $34 in 2026, said KFF, a health policy nonprofit.
But enrollees in Medicare, the federal health program for adults 65 and older, can likely find lower-cost drug plans if they shop around during open enrollment, which runs through Dec. 7.
Prices for stand-alone Medicare "Part D" prescription drug plans vary widely. Among eight prescription drug plans offered nationally, average monthly premiums will range from $6 to $204 in 2027, KFF said.
Consumers who choose private Medicare Advantage plans, which combine traditional Medicare and prescription drug coverage, can find cheaper options. KFF said drug coverage included in Medicare Advantage plans will average about $9 per month in 2027, an increase of $2 from this year.
About 25 million people were in a stand-alone Medicare Part D plan. Another 31 million were in a Medicare Advantage plan with prescription drug coverage.
KFF's estimated price hikes are significantly more than what the Centers for Medicare and Medicaid Services reported in September before the start of open enrollment. CMS said the average monthly premium for stand-alone Part D prescription drug plans would be $36 in 2027, up about $1 from 2026.
KFF's estimates, based on June enrollment figures, calculated costs for enrollees who kept their same plan.
CMS said the agency's estimates anticipated people would switch plans in 2027.
KFF officials said it's important for consumers to scrutinize their coverage and take action before the end of open enrollment.
"They have an opportunity to switch to a lower-cost plan during open enrollment, but they have to take action if they want to see a lower premium," said Juliette Cubanski, vice president and director of the program on Medicare policy for KFF.
Older Americans on Medicare will likely scrutinize the change in monthly premiums when they select their coverage for next year.
Stony Point, New York, resident Robert Lukas, 72, always thought retirement would usher in a "secure and dignified time" in his life. But the retired U.S. Postal Service employee said the amount he spends on health coverage is straining his budget.
In addition to Medicare coverage, Lukas spends about $920 a month on a supplemental plan for him and his wife that pays out-of-pocket costs not covered by Medicare. That monthly bill alone absorbs 44% of an annuity he depends on for retirement income.
Despite the big monthly bill, Lukas said he and his wife are "luckier than most to have the relative β and hopefully not fleeting β security we have."
He worries about other seniors and younger people who struggle to make ends meet. Fewer than half of adults said they can afford health care, medical appointments and prescriptions, according to a June survey from West Health-Gallup.
"It's everything," Lukas said. "It's health care but it's also inflation. It's the cost of living."
Higher average monthly premiums aren't the only rising expense Medicare enrollees will pay for their prescription drug coverage. Consumers will face a deductible of several hundred dollars for drug coverage in 2027, KFF said.
KFF said the average deductible for a stand-alone plan will be $643 in 2027, up from $540 a year ago. Medicare Advantage enrollees will have a slightly lower deductible on average for their prescription drug coverage β $489 in 2027, up from $360 this year.
Most enrollees will pay more for brand name drugs and another category, called non-preferred drugs, in the coming year. That's because plans will charge coinsurance β a percentage of the medication's overall costs β rather than copayments, KFF said.
Trump administration officials previously said the Inflation Reduction Act increased costs for prescription drug coverage. The 2022 climate and health care law imposed a $2,000 cap in 2025 on what Medicare enrollees paid out of pocket for prescription drugs. That cap increased to $2,100 in 2026.
The Trump administration ended a "demonstration project" that steered subsidies to insurance companies to keep Medicare drug plan premiums lower. The project cost the federal government $9.8 billion in 2025 and 2026.
