Millions of Medicare beneficiaries could face substantially higher prescription drug plan premiums in 2027, making this year's open enrollment period particularly important for seniors who rely on stand-alone Medicare Part D coverage, experts say. The increase would amount to roughly $204 more per year for the average enrollee who stays in the same plan. Prescription drugs often make up a significant expense for older Americans, particularly those living on fixed incomes.
About three-quarters of stand-alone Part D enrollees who do not receive low-income subsidies, or 10.4 million people, would pay a higher monthly premium in 2027 if they remain in their current plans, KFF found. And among eight national stand-alone Part D plans analyzed by KFF, average monthly premiums for 2027 ranged from roughly $6 to $204. Centene's Wellcare Value Script Rx is projected to have the lowest average premium, at $6.50 a month, while United's AARP Medicare Rx Preferred is projected to average $204.50 per month.
That means comparing plans during open enrollment will be particularly important, since beneficiaries who simply allow their existing coverage to renew could end up paying significantly more. The 50 percent increase is specifically to KFF's estimate for stand-alone prescription drug plans or PDPs, which are purchased by people who generally receive their medical coverage through Original Medicare. KFF estimates that the enrollment-weighted average premium for those plans would reach $51 a month in 2027, compared with $34 in 2026, assuming people currently enrolled in the plans keep the same coverage.
While average Medicare Advantage premiums are projected to decline, that doesn't mean your overall healthcare costs will follow,” Thompson said. Seniors need to look beyond the monthly premium and understand what their total healthcare costs may look like.” Drug coverage provided through Medicare Advantage looks considerably different. The average monthly Part D premium for Medicare Advantage prescription drug plans is projected at about $9 in 2027, compared with $51 for stand-alone plans.
However, the KFF data differs dramatically from the Centers for Medicare & Medicaid Services. CMS projected an average stand-alone Part D premium of about $36 per month for 2027, roughly $1 higher than its 2026 estimate. KFF said one possible explanation for the discrepancy is that CMS may be accounting for beneficiaries moving into cheaper plans, whereas its $51 estimate looks at what happens if existing enrollees keep their current coverage.
The higher premiums have largely been attributed to the end of a temporary federal program designed to stabilize stand-alone Part D premiums while insurers adjusted to major changes created under the Inflation Reduction Act. The Centers for Medicare & Medicaid Services announced in July that the Part D Premium Stabilization Demonstration would end after 2026. The program provided additional financial support to stand-alone plans after changes to Part D shifted a greater share of prescription drug costs onto insurers.
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