Medicare Part D Premium 2027 Is Rising: See Who Pays More, $36 Average, Plan Cuts And How To Switch By Dec. 7.

Medicare Part D Premium 2027: On September 28, CMS released its 2027 plan data and projected that the average stand-alone drug plan premium will reach $36 a month, up less than $1 from $35.09 this year. The same release confirmed that a federal subsidy that held premiums down since 2025 is gone. KFF’s new analysis of the plan files says many people will see small increases in their current plan, while others face much bigger jumps if they do not switch. There will be no $0-premium stand-alone plans for anyone outside the Extra Help program, and the number of plans keeps shrinking for the fourth year running. Open enrollment runs from October 15 through December 7, so the next nine weeks are the window to act. We’ll be updating this article monthly.

The money at stake is real. KFF estimates that the Part D Premium Stabilization Demonstration cut the average stand-alone premium by about $26 a month in 2025 and $16 in 2026, at a federal cost of roughly $9.8 billion over the two years. CMS says the market is ready to stand without it, and its announcement describes reports of turmoil as misleading. KFF’s Juliette Cubanski counters that averages hide the people at the top of the range. Roughly 25 million people rely on stand-alone plans, and most are renewed automatically if they do nothing. This guide explains why premiums are rising, who is most exposed, how to compare plans on total cost, how to switch, which dates matter and what the numbers look like, with a calculator that compares your current plan with another.

Medicare Part D Premium 2027 Key Highlights

Why Is the Medicare Part D Premium Going Up in 2027?

Three forces are pushing stand-alone premiums, and the first is the one making headlines.

The first is the end of the subsidy. The demonstration was a voluntary program CMS started in 2024 to steady stand-alone plans while insurers adjusted to the Inflation Reduction Act’s redesign of Part D. In 2025 it cut the base premium used for plans by $15 and limited any plan’s yearly increase to $35. In 2026 it cut $10 and raised the limit on increases to $50. Plans that took part in the program will have none of that help in 2027, and CMS announced on July 28 that it would not continue it.

The second is the benefit design itself. Since 2025, plans carry more of the risk for expensive drugs because the cap on what members pay out of pocket pushes costs onto insurers. When drug prices and use rise, plans pass part of the cost back through premiums. The base beneficiary premium, which sets a benchmark for the market, rises about 6 percent, the maximum yearly growth the law allows through 2029.

The third is the shrinking market. When fewer insurers compete, the plans that remain have less reason to hold prices down.

The Part D Premium Stabilization Demonstration

Total federal cost across 2025 and 2026 was about $9.8 billion. CMS says the demonstration was always meant to be temporary, and that after two years of experience under the redesigned benefit, carriers can bid accurately. Insurers submitted their 2027 bids before they learned the program would not continue, which is why some analysts expected larger jumps than have turned up so far.

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CMS vs KFF: Why the 2027 Premium Story Has Two Versions

The two sources agree on the numbers and disagree on how to read them.

CMS points to the enrollment-weighted average. It says stand-alone premiums will edge up less than $1 and describes broad pricing stability. The average premium for Medicare Advantage plans with drug coverage is falling sharply, from $11.32 to $7 after rebates.

KFF points to the spread. Its analysis finds many enrollees will see modest increases in their current plan, but some could pay much more if they stay put, and the number of stand-alone options drops again. It reports that even the AARP-branded UnitedHealthcare plans, which enroll more than 2 million people, are in line for premium increases. An average is built partly from low-premium plans with large enrollment, so it can hide steep increases in smaller or higher-priced plans.

Both can be true at once. A national average that rises by under a dollar does not tell you what your own plan charges.

What Will Stand-Alone Part D Plans Look Like in 2027?

The landscape is thinner and slightly pricier at the bottom.

The last three rows come from an analysis of the CMS landscape file published by an insurance broker. They are secondary figures, and counting methods differ between sources. Other press reports say nationwide stand-alone plan counts have fallen from 709 in 2024 to 464 in 2025 and 360 in 2026.

Two other details from KFF’s reporting stand out. Centene’s Wellcare plans offer the lowest premiums, under $10 a month in multiple states. Humana is the only insurer offering three stand-alone plans in all 34 regions.

Anyone who has relied on a $0-premium stand-alone plan should expect to pay something next year unless they get Extra Help.

Who Is Most Likely to Pay More for Part D in 2027?

Four groups deserve extra attention.

People in plans that are being discontinued. If your plan is leaving your area, your insurer must tell you, but you may be placed in a different plan with different rules. Check the notice and do not assume the new plan covers your drugs the same way.

People who have paid very little or nothing. The loss of $0 premium plans for people outside Extra Help means a jump from nothing to at least about $5 a month, and some of these enrollees may face larger increases.

People in popular national plans. The big plans carry the largest enrollment, so any move in their prices affects millions of people.

People on expensive drugs. They hit the $2,400 yearly cap, so their drug costs are fixed, but the premium is added on top. A higher premium is a larger share of their total bill.

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Premium Increase Math: What Different Jumps Cost in a Year

Small monthly changes add up. Here is what a rise looks like over a full year.

At the highest listed stand-alone premium of $326 a month, a year of coverage would cost $3,912 before any drug costs. Almost no one will pay that, and it shows why comparing plans matters.

Premium Is Not Total Cost: Why the Cheapest Plan Can Cost More

Many people pick a plan by premium alone. That works only if your drug spending is very low. A plan with a $15 premium and a $700 deductible can cost more than a $45 plan with no deductible once you start filling prescriptions.

Here is a worked example. Plan A has a $15 monthly premium, a $700 deductible and 25 percent coinsurance. Plan B has a $60 monthly premium, no deductible and 25 percent coinsurance. Both are capped at $2,400 in drug costs.

At higher spending, both plans reach the cap and the lower premium wins. At moderate spending, the no-deductible plan nearly catches up. Plan B only wins if its premium is close to Plan A’s. These are the author’s calculations from the standard benefit design, and real plans use tiers and copays that change the result. Run your own numbers in the Plan Finder or the calculator below.

Medicare Advantage Drug Coverage vs a Stand-Alone Plan: The $7 vs $36 Gap

The average Part D premium inside a Medicare Advantage plan is projected at $7 for 2027, about one-fifth of the $36 stand-alone average. KFF says the gap exists partly because Medicare Advantage sponsors can use federal rebates to buy down drug premiums, and those rebates were not part of the demonstration that is ending.

That does not make Medicare Advantage the right choice for everyone. A Medicare Advantage plan replaces Original Medicare with a private plan, which can change which doctors and hospitals you can use, how referrals work and what you pay for care. Moving from Original Medicare to Medicare Advantage can also affect your ability to buy a Medigap policy later. If you are happy with Original Medicare, a stand-alone plan is the only way to keep it and still get drug coverage.

Part D Premium and IRMAA: The Extra Charge for Higher Earners

If your income from two years ago was above certain thresholds, you pay an income-related surcharge on top of your plan premium. In 2026 the Part D surcharge ranged from about $14.50 to $91.00 a month. The 2027 amounts and income thresholds have not yet been published. IRMAA goes to Medicare, not the plan, and is usually deducted from Social Security. If your income dropped because of retirement or another life-changing event, you can ask Social Security to use a more recent year.

How Extra Help Changes the Premium Picture

People with limited income and resources can qualify for Extra Help, also called the low-income subsidy. It lowers or removes premiums for benchmark plans and reduces deductibles and copays. The loss of $0 plans does not apply in the same way to people who get Extra Help, because the program pays premiums up to a benchmark.

Many people who qualify never apply. You apply through Social Security, and approval can change what your best plan is, so compare options after you are approved. People with Extra Help can switch plans more often than other enrollees, which gives them extra flexibility during the year.

What to Do Before December 7: A Practical Checklist

1. Find your Annual Notice of Change. Plans were required to send it by September 30. Look for the 2027 premium, deductible, formulary and pharmacy changes.
2. List every medicine, with dose and refill frequency, and your preferred pharmacy.
3. Enter them in the Medicare Plan Finder and filter by total estimated yearly cost, not premium alone.
4. Compare your current plan against at least two alternatives, including a low-premium plan and one with a lower deductible.
5. Check each plan’s formulary, prior authorization rules and preferred pharmacy network.
6. Decide by December 7, then confirm your enrollment in writing.
7. Call 1-800-MEDICARE or your State Health Insurance Assistance Program if the comparison is unclear.

If your current plan still wins on total cost, stay. If it does not, switching is simple and usually takes one application.

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How to Switch Your Part D Plan

You can switch online through the Medicare Plan Finder, by phone through the plan or 1-800-MEDICARE, or by returning a paper form. When you enroll in the new plan, Medicare automatically cancels your old one, so you do not need to end it yourself. Keep a copy of the confirmation number.

If you have Medicare Advantage, check with your plan before you change anything. Switching to a stand-alone drug plan can drop your Medicare Advantage coverage and send you back to Original Medicare.

Part D Processing Time: When Does the New Plan Start?

If you enroll between October 15 and December 7, your new coverage starts on January 1, 2027. Plans generally send a welcome letter and member ID card before the new year. If you have not received them by late December, call the plan.

If you miss December 7, you generally have to wait for the next open enrollment unless you qualify for a special enrollment period. People in Medicare Advantage can also make changes from January 1 to March 31. Do not assume you can fix a bad choice in the spring.

Part D Premium Payment Schedule and Key Dates

You can pay your premium through a monthly bill, a deduction from your Social Security or Railroad Retirement payment, or automatic bank payment if your plan offers it. If a deduction is set up, there may be a delay before it starts, and you may be billed in the meantime.

Part D Premium Calculator: Compare Your Plan With Another

The calculator compares two plans on total yearly cost. Enter the premium, deductible and coinsurance from each plan, and your yearly drug spending. It also shows how much your current plan’s premium rose from last year.

Part D premium increase and plan switch calculator

Compare your current plan’s 2027 costs with another plan. Enter the premium, deductible and coinsurance from each plan’s notice or the Medicare Plan Finder, and your yearly drug spending at plan prices.Plan A: your current plan2026 monthly premium (USD)2027 monthly premium (USD)Deductible (USD, maximum $700)Coinsurance after deductible (percent)Plan B: a plan you are considering2027 monthly premium (USD)Deductible (USD, maximum $700)Coinsurance after deductible (percent)Your yearly drug spending at plan prices (USD)Compare plans

Plan B looks cheaper by about $321 a year

Your current plan’s premium change from 2026 to 2027 is +$276 a year, or 153 percent.

Estimate under the standard Part D design with a $2,400 yearly out-of-pocket cap in 2027. Many plans use copays and tiers instead of one coinsurance rate, and drugs paid under Part B, drugs your plan does not cover and any income-related surcharge are not included. The average stand-alone premium CMS projects is $36 in 2027, up from $35.09 in 2026, but individual plans can differ widely. Your plan’s Annual Notice of Change and the Medicare Plan Finder show exact prices for your drugs and pharmacy.

Does Staying in Your Current Part D Plan Cost You More?

Often the answer is yes, but only modestly. Many enrollees will see a few extra dollars a month. For others, the increase is large enough that switching saves hundreds of dollars a year. The risk of doing nothing is that your premium, your drug coverage and your pharmacy network can all change at once. A drug your plan covered last year may have moved to a higher tier, may now need prior authorization or may be removed.

Treat the Plan Finder as a yearly checkup. Insurance brokers can also help you compare plans at no cost to you, but ask whether they represent a limited list of companies.

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Conclusion

The Medicare Part D premium 2027 will rise by less than a dollar for the average stand-alone plan, but that average hides a wide range. The federal subsidy that held premiums down is gone, free plans are disappearing for people without Extra Help, choices are shrinking and some enrollees will face far larger jumps if they stay in the same plan. The remedy is simple and free: read your Annual Notice of Change, price your drugs in the Plan Finder, compare total yearly cost and decide by December 7. Use the calculator to see whether switching saves money, ask about Extra Help if your income is limited and rely on Medicare.gov and your plan’s own letters for the final word. We’ll be updating this article as soon as CMS and KFF publish more 2027 plan data.

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