- CMS projects the average Medicare Advantage premium will decline to $12 a month in 2027, while average premiums for stand-alone Part D plans are expected to rise slightly as beneficiaries prepare for the annual enrollment period.
Medicare Advantage premiums are projected to decline sharply in 2027, according to new figures from the Centers for Medicare & Medicaid Services (CMS), with the weighted average monthly premium expected to fall from $14.37 in 2026 to $12 next year.
This represents a 16.5% decrease across Medicare Advantage plans, including plans with prescription drug coverage and Special Needs Plans. CMS released the figures Sept. 28 ahead of the 2027 Medicare open-enrollment period.
The new figures mean the average cost of a Medicare Advantage plan is projected to be lower next year, although the national average does not determine what an individual beneficiary will pay. Premiums, provider networks, covered drugs and other plan features can vary by plan and location.
CMS also expects the number of Medicare Advantage plans available nationally to remain broadly stable. About 5,532 plans are projected to be offered in 2027, compared with 5,553 in 2026. More than 99% of Medicare beneficiaries are expected to have access to at least one Medicare Advantage plan, while 97% will have access to at least 10 choices.
The development comes as insurers prepare to provide beneficiaries with information about changes to premiums, benefits, and provider networks before the annual enrollment period begins.
Medicare Advantage Premiums Fall While Part D Costs Edge Higher
The premium picture differs between Medicare Advantage and stand-alone Medicare Part D coverage. For stand-alone Part D prescription drug plans, CMS projects the average monthly premium will increase from $35.09 in 2026 to $36 in 2027, an increase of less than $1 per month. CMS also said 88% of non-low-income beneficiaries will have access to a basic Part D plan costing $10.30 or less, while 93% will have access to an enhanced plan for less than $6 a month.
Drug coverage within Medicare Advantage plans is showing a different trend. After Medicare Advantage rebates are applied, CMS projects the average monthly Part D premium for MA plans with drug coverage will decline from $11.32 to $7, a reduction of $4.32, or 38%.
Fierce Healthcare's coverage of the new CMS figures highlights the contrast between lower Medicare Advantage premiums and the smaller increase projected for stand-alone Part D plans. The agency also said supplemental benefits such as hearing, dental and vision coverage are expected to remain stable across Medicare Advantage plans.
Enrollment is projected at approximately 34 million people in 2027, equivalent to about 47.4% of the Medicare population. CMS noted that plan enrollment projections have historically been below actual enrollment and said it expects 2027 enrollment to be higher than the current projection.
The number of available plans can also mask differences at the state and local levels. National plan availability is expected to remain relatively steady, but individual beneficiaries may see changes to the plans offered in their areas.
What Beneficiaries Need to Know Before Open Enrollment
Medicare beneficiaries will have from Oct. 15 through Dec. 7, 2026, to change their coverage for 2027. Medicare.gov says beneficiaries can switch Medicare Advantage plans, change Part D coverage, or move between Medicare Advantage and Original Medicare during the annual enrollment period.
The upcoming enrollment period is therefore about more than the headline national premium averages. The 2027 Medicare rate information released by CMS provides national projections, but the actual cost of coverage can depend on the specific plan available to a beneficiary.
USA Today reported that Medicare Advantage and Part D insurers are required to notify enrollees of changes to premiums, prescription coverage and provider networks by Sept. 30. Those notices are important because a lower average premium does not necessarily mean every beneficiary will pay less. A plan could have a lower premium while changes to its drug formulary, provider network or other cost-sharing terms alter the overall cost of coverage.
CMS said approximately eight in 10 Medicare Advantage beneficiaries will be able to remain in their current plan with the same or a lower premium in 2027. The agency is also directing beneficiaries to Medicare's Plan Finder, which allows users to compare premiums, benefits, costs and drug coverage.
The new figures arrive after CMS finalized 2027 Medicare Advantage payment policies in April. The agency projected that its finalized policies would result in an average 2.48% increase in payments to Medicare Advantage plans, or more than $13 billion, for 2027.
That payment figure and the projected decline in beneficiary premiums measure different parts of the Medicare Advantage system and should not be treated as equivalent. For 2027, the clearest national projections are that Medicare Advantage premiums will fall, stand-alone Part D premiums will rise slightly, and plan availability will remain broadly stable.
Beneficiaries will be able to see the plan-specific numbers during the upcoming enrollment period, which begins Oct. 15.