2027 Medicare Advantage Premiums Are Expected to Drop — Here’s What Beneficiaries Should Know
(Source: CMS.gov)
Medicare beneficiaries are getting their first look at what Medicare Advantage coverage may cost in 2027, and the early numbers bring some potentially good news.
CMS announced September 28 that the average monthly Medicare Advantage premium is expected to fall from $14.37 in 2026 to about $12 in 2027.
That’s a national average, so it doesn’t mean every plan will get cheaper. But it does suggest that Medicare Advantage premiums overall are expected to remain relatively low heading into next year.
What this affects:
- People enrolled in Medicare Advantage
- Medicare Advantage plans that include prescription drug coverage
- The plans and premiums available for 2027
- The choices beneficiaries will make during Open Enrollment
CMS expects about 34 million people to be enrolled in Medicare Advantage in 2027, representing roughly 47% of all Medicare beneficiaries.
Most beneficiaries should also continue to have plenty of options. CMS says more than 99% of people with Medicare are expected to have access to at least one Medicare Advantage plan, while 97% should have 10 or more plans available in their area.
Drug coverage inside Medicare Advantage may get cheaper, too.
For Medicare Advantage plans that include prescription drug coverage, CMS projects that the average monthly premium tied to the drug portion of the plan will fall from $11.32 in 2026 to about $7 in 2027.
That doesn’t necessarily mean your total monthly premium will fall by the same amount, but it is another sign that average costs inside Medicare Advantage plans are expected to remain fairly stable.
What stays the same: Medicare Advantage plans can still change from year to year.
Your plan may adjust its provider network, copayments, deductibles, prescription drug list or extra benefits such as dental, hearing and vision coverage.
That’s why the national average only tells part of the story.
What this doesn’t mean: A lower national average does not guarantee that your individual premium will go down.
Your plan could still raise its premium or make other changes that affect what you pay during the year.
CMS says about eight in 10 people currently enrolled in Medicare Advantage are expected to be able to remain in their existing plan with the same or a lower premium in 2027.
The most important thing you can do is review your plan’s Annual Notice of Change when it arrives.
Then, once Medicare Open Enrollment begins October 15, compare your current plan with the other options available in your area.
Don’t look at the monthly premium alone. Check whether your doctors are still in network, whether your medications are still covered, what your copayments will be and whether any benefits you regularly use are changing.
Medicare Open Enrollment runs from October 15 through December 7, with changes generally taking effect January 1, 2027.
Source: CMS.gov