Medicare Advantage 2027 Changes: Average Premiums Projected to Drop 16.5% Before Open Enrollment

Medicare Advantage beneficiaries are heading into the 2027 Open Enrollment season with an unusual mix of lower projected average premiums, relatively stable plan availability and higher standard Medicare Part D cost-sharing limits.

The Centers for Medicare & Medicaid Services (CMS) projects that the weighted average monthly premium across Medicare Advantage plans will fall from $14.37 in 2026 to $12.00 in 2027.

That represents a 16.5% decrease in the national weighted average.

CMS also projects lower average prescription drug premiums inside Medicare Advantage plans that include Part D coverage.

But a lower national average does not mean every Medicare Advantage member will pay less in 2027.

Individual plans can still change their premiums, deductibles, doctor networks, drug formularies, copayments, supplemental benefits and maximum out-of-pocket limits.

That makes the upcoming Medicare Open Enrollment Period especially important.

Open Enrollment runs from October 15 through December 7, 2026, with most changes taking effect on January 1, 2027.

Here is what Medicare beneficiaries need to know before choosing coverage for 2027.

Medicare Advantage 2027 Changes at a Glance

2027 Medicare change	2026	2027	Change
Weighted average Medicare Advantage premium	$14.37/month	$12.00/month projected	-16.5%
Average Part D premium in MA-PD plans	$11.32/month	$7.00/month projected	-38%
Average stand-alone Part D premium	$35.09/month	About $36/month projected	Less than +$1
Medicare Advantage plans nationwide	5,553	About 5,532	Slight decrease
Part D standard deductible	$615	$700	+$85
Part D out-of-pocket threshold	$2,100	$2,400	+$300
Access to at least one MA plan	—	More than 99%	Broad access
Access to 10 or more MA plans	—	97%	Broad choice

CMS also estimates that approximately 34 million people will be enrolled in Medicare Advantage in 2027, representing about 47.4% of all Medicare beneficiaries.

The figures come from the Centers for Medicare & Medicaid Services’ 2027 Medicare Advantage and Part D landscape announcement.

How Much Will Medicare Advantage Premiums Cost in 2027?

CMS projects that the weighted average Medicare Advantage monthly premium will decline from:

$14.37 in 2026

to:

$12.00 in 2027

The difference is:

$14.37 − $12.00 = $2.37 less per month

Across 12 months:

$2.37 × 12 = $28.44

At the national weighted average, that would equal approximately $28.44 less in Medicare Advantage plan premiums over a full year.

The percentage decrease is:

$2.37 ÷ $14.37 × 100 = approximately 16.5%

However, beneficiaries should not interpret $12 as the price of every Medicare Advantage plan.

It is a weighted national average.

Some plans charge a $0 additional monthly premium. Others charge substantially more.

Actual premiums depend on the insurer, plan and geographic service area.

CMS says beneficiaries should review their individual 2027 plan information because costs and benefits can change from one year to the next.

A Lower Medicare Advantage Premium Does Not Eliminate Medicare Part B

One of the most important points for beneficiaries to understand is that a Medicare Advantage premium and a Medicare Part B premium are different costs.

According to Medicare.gov’s official Medicare cost guidance, people enrolled in Medicare Advantage generally must continue paying their Medicare Part B premium to stay in the plan.

That means a beneficiary could have a Medicare Advantage plan with a $0 plan premium while still paying Medicare Part B.

Some Medicare Advantage plans may help pay part of a beneficiary’s Part B premium, but that benefit depends on the individual plan.

This distinction can be especially important for retirees who have Medicare premiums deducted directly from their Social Security payments.

For a broader look at how retirement benefits may change next year, see our guide to 2027 Social Security benefit changes, COLA, retirement age and new limits.

Medicare Advantage Prescription Drug Premiums Are Projected to Fall

Many Medicare Advantage plans include prescription drug coverage.

These are commonly called Medicare Advantage Prescription Drug plans, or MA-PD plans.

CMS projects that the average monthly Part D premium component in these plans, after Medicare Advantage rebates, will decline from:

$11.32 in 2026

to:

$7.00 in 2027

The monthly difference is:

$11.32 − $7.00 = $4.32

That equals a decline of approximately:

38%

Across a full year:

$4.32 × 12 = $51.84

So the projected national average Part D premium component within MA-PD plans would be approximately $51.84 lower over 12 months.

Again, this is an average.

A beneficiary’s actual prescription drug expenses depend on factors including:

the plan’s monthly premium;
prescription drug deductible;
medications covered by the formulary;
drug tiers;
copayments and coinsurance;
preferred pharmacy networks; and
total yearly prescription drug spending.

That is why beneficiaries should compare more than the advertised Medicare Advantage premium.

Stand-Alone Medicare Part D Premiums Are Expected to Rise Slightly

The outlook is different for people who use a separate stand-alone Medicare Part D prescription drug plan.

CMS projects the total average monthly premium for stand-alone Part D plans to rise from:

$35.09 in 2026

to approximately:

$36.00 in 2027

The estimated difference is:

$36.00 − $35.09 = $0.91 per month

Across one year:

$0.91 × 12 = $10.92

So the projected average increase is less than $1 per month.

CMS also says 88% of non-low-income beneficiaries are expected to have access to a basic Part D plan costing $10.30 or less per month.

The agency says 93% of non-low-income beneficiaries are expected to have access to an enhanced Part D plan with a premium below $6 per month.

These are availability statistics rather than guarantees about what any specific beneficiary will pay.

Medicare Part D Deductible Rises to $700 in 2027

Although average premiums are projected to remain relatively stable, the defined-standard Part D deductible will increase substantially in 2027.

The standard deductible rises from:

$615 in 2026

to:

$700 in 2027

The dollar increase is:

$700 − $615 = $85

Percentage increase:

$85 ÷ $615 × 100 = approximately 13.8%

CMS finalized the $700 amount in its 2027 Medicare Advantage and Part D Rate Announcement.

It’s important to distinguish the standard Part D benefit design from every individual plan.

Actual plan deductibles can differ depending on plan design and Medicare requirements.

2027 Part D Out-of-Pocket Threshold Rises to $2,400

The defined-standard annual Part D out-of-pocket threshold will also increase.

For 2026, the threshold is:

$2,100

For 2027:

$2,400

Increase:

$2,400 − $2,100 = $300

That’s approximately a:

14.3% increase

CMS lists both the $700 standard deductible and $2,400 out-of-pocket threshold in its finalized 2027 Part D benefit parameters.

This is another reason beneficiaries should avoid choosing a prescription drug plan based only on its monthly premium.

For someone who uses expensive medications, total yearly costs can be considerably more important than a small difference in premiums.

Will There Be Fewer Medicare Advantage Plans in 2027?

Slightly fewer plans are expected to be available nationally.

CMS projects the total number of Medicare Advantage plans to move from:

5,553 plans in 2026

to approximately:

5,532 plans in 2027

That’s a decline of:

21 plans nationwide

The overall national reduction is small.

However, Medicare Advantage coverage is local.

An insurer could leave one county while continuing to operate in another, so the national plan count does not tell beneficiaries whether their individual plan will remain available.

CMS projects that more than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan in 2027.

The agency also says 97% will have access to 10 or more Medicare Advantage options.

Can You Keep Your Current Medicare Advantage Plan in 2027?

Many beneficiaries are expected to be able to stay in their existing plan.

CMS estimates that 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.

But keeping the same plan name does not necessarily mean keeping exactly the same coverage.

Plans can change important details from year to year.

Those changes may involve:

doctor and specialist networks;
hospital networks;
prescription drug formularies;
pharmacy networks;
copayments;
coinsurance;
deductibles;
maximum out-of-pocket limits;
dental benefits;
vision benefits;
hearing benefits; and
other supplemental benefits.

Beneficiaries should therefore review their plan’s Annual Notice of Change before deciding to keep the same coverage.

When Is Medicare Open Enrollment for 2027?

The Medicare Open Enrollment Period runs from:

October 15, 2026 through December 7, 2026

Medicare.gov confirms that this annual period allows beneficiaries to make changes to Medicare health and prescription drug coverage.

Changes selected during Open Enrollment generally take effect on:

January 1, 2027

During Open Enrollment, beneficiaries can generally:

switch from one Medicare Advantage plan to another;
move from Original Medicare to Medicare Advantage;
leave Medicare Advantage and return to Original Medicare;
join, switch or drop Medicare prescription drug coverage where permitted; and
compare 2027 premiums, benefits and other plan details.

You can review the official rules on the Medicare Open Enrollment page.

CMS also encourages beneficiaries to use the official Medicare Plan Finder to compare available plans.

What Should You Compare Before Choosing a 2027 Medicare Advantage Plan?

The monthly premium matters, but it should not be the only factor in the decision.

1. Doctors and Hospitals

Confirm that your preferred primary-care doctor, specialists and hospitals will participate in the plan’s 2027 provider network.

A lower premium may not be worthwhile if an important provider is no longer in-network.

2. Prescription Drugs

Check every medication you regularly take.

Look at:

whether the drug remains on the formulary;
which tier it is assigned to;
what you would pay at your preferred pharmacy;
whether prior authorization applies; and
whether step therapy or quantity limits apply.

3. Maximum Out-of-Pocket Limit

Medicare Advantage plans have annual limits on what members pay for covered Part A and Part B services.

The amount varies by plan.

A plan with a slightly higher premium but a more favorable out-of-pocket structure could potentially cost less over the year for someone who expects significant medical care.

4. Copayments and Coinsurance

Look at expected costs for:

primary-care visits;
specialist visits;
emergency-room care;
inpatient hospital stays;
outpatient procedures;
diagnostic tests; and
other frequently used services.

The cheapest premium does not automatically mean the lowest total yearly cost.

5. Dental, Vision and Hearing Benefits

Medicare Advantage plans may include supplemental benefits such as dental, vision and hearing coverage.

However, individual plans can change coverage limits, participating providers and member cost sharing.

Compare the actual benefit rather than simply whether the plan advertises dental or vision coverage.

6. Prescription Drug Costs

If the plan includes Part D, compare its formulary and drug costs closely.

The average MA-PD premium is projected to decline, but a beneficiary’s medication costs can still change because of drug tiers, deductibles or pharmacy arrangements.

7. Medicare Part B Premium

Remember that beneficiaries generally continue paying Medicare Part B even when enrolled in Medicare Advantage.

For retirees receiving Social Security, Medicare deductions can affect how much money reaches their bank account each month.

You can estimate possible Social Security changes using our Social Security COLA 2027 Calculator.

For a broader benefit outlook, see our Social Security Benefit Increase Projection for 2027.

Does a $0 Medicare Advantage Premium Mean the Plan Is Free?

No.

A $0 Medicare Advantage premium means the plan does not charge an additional monthly plan premium.

It does not mean the beneficiary has no Medicare costs.

Medicare.gov explains that Medicare Advantage costs vary by plan and that beneficiaries generally must continue paying their Part B premium.

Depending on the plan and health-care use, members may also owe:

deductibles;
copayments;
coinsurance;
prescription drug costs; and
other plan-specific expenses.

That means a $0 premium plan can still generate substantial out-of-pocket costs over the year.

Medicare Advantage vs. Original Medicare in 2027

There is no single Medicare coverage arrangement that is best for everyone.

Medicare Advantage plans combine Medicare Part A and Part B coverage through private Medicare-approved insurers.

Many also include Part D prescription drug coverage and additional benefits.

However, these plans can use provider networks and plan-specific coverage rules.

Original Medicare generally allows beneficiaries to see a broad range of doctors and hospitals that accept Medicare.

People using Original Medicare may separately choose Part D drug coverage and may consider Medicare Supplement Insurance, commonly known as Medigap, if eligible.

A coverage decision can depend on:

doctors and hospitals;
medications;
expected medical needs;
premiums;
copayments;
maximum out-of-pocket exposure;
travel;
provider flexibility; and
supplemental benefits.

The projected $12 national Medicare Advantage premium should therefore be viewed as one piece of the decision rather than the deciding factor.

How Medicare Changes Fit Into the Bigger 2027 Retirement Picture

Medicare coverage changes are happening at the same time retirees are waiting for final 2027 Social Security figures.

For readers following both issues, Elite Era Trends has separate guides explaining the 2027 Social Security benefit changes and how the Social Security COLA is calculated using CPI-W inflation.

Keeping these issues separate is useful.

The Social Security COLA determines the annual percentage adjustment in eligible Social Security benefits.

Medicare premiums and other deductions can affect how much money a beneficiary ultimately receives or spends.

Frequently Asked Questions

What Is the Average Medicare Advantage Premium for 2027?

CMS projects that the weighted average monthly Medicare Advantage premium will be $12.00 in 2027, down from $14.37 in 2026.

Are Medicare Advantage Premiums Falling in 2027?

On a national weighted-average basis, CMS projects a 16.5% decrease from 2026 to 2027.

Individual plan premiums can still rise, fall or remain unchanged.

When Is Medicare Open Enrollment for 2027 Coverage?

Medicare Open Enrollment runs from October 15 through December 7, 2026.

Coverage changes selected during this period generally take effect January 1, 2027.

Will Every Medicare Advantage Plan Cost $12 in 2027?

No.

The $12 figure is the projected weighted national average.

Individual plans vary substantially, and some plans charge a $0 additional monthly premium.

Do I Still Have to Pay Medicare Part B With Medicare Advantage?

Generally, yes.

Medicare.gov states that beneficiaries must have Part B and keep paying their Part B premium to remain enrolled in a Medicare Advantage plan.

Some plans may help pay part of that premium.

What Is the Average Stand-Alone Medicare Part D Premium for 2027?

CMS projects an average monthly premium of approximately $36, compared with $35.09 in 2026.

What Is the Medicare Part D Deductible for 2027?

The defined-standard Medicare Part D deductible is $700 in 2027, compared with $615 in 2026.

What Is the Medicare Part D Out-of-Pocket Threshold for 2027?

CMS finalized a $2,400 out-of-pocket threshold for the defined-standard Part D benefit in 2027, up from $2,100 in 2026.

Will My Medicare Advantage Plan Still Be Available in 2027?

That depends on the specific plan and location.

CMS projects approximately 5,532 Medicare Advantage plans nationwide in 2027 and says more than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan.

However, insurers can change the counties or service areas where individual plans are offered.

Should I Automatically Keep My Current Medicare Advantage Plan?

Not necessarily.

Even if the premium stays the same, provider networks, prescription drug coverage, copays, deductibles and supplemental benefits can change.

Review your Annual Notice of Change and compare available 2027 options before deciding.

Bottom Line

Medicare Advantage average premiums are projected to decline nationally in 2027.

CMS expects the weighted average monthly premium to fall from:

$14.37 in 2026

to:

$12.00 in 2027

That is a projected 16.5% decrease.

The average prescription drug premium component inside Medicare Advantage plans that include Part D is also projected to decline from $11.32 to $7.00.

Meanwhile, the average stand-alone Part D premium is projected to increase slightly from $35.09 to approximately $36.

But beneficiaries should look beyond premiums.

The defined-standard Part D deductible rises to $700, while the annual Part D out-of-pocket threshold rises to $2,400 in 2027.

Provider networks, drug formularies, copayments and supplemental benefits can also change from one year to the next.

With Medicare Open Enrollment running from October 15 through December 7, 2026, beneficiaries should review their current coverage and compare available 2027 plans before automatically renewing.

Social Security COLA 2027 Calculator: Estimate Your New Monthly Check

Social Security Benefit Increase Projection 2027

2027 Social Security Benefit Changes: COLA, Retirement Age and New Limits

How Is Social Security COLA Calculated? CPI-W Formula and 2027 Estimate