Medicare Drug Plan Premiums Could Jump Sharply for 2027, New KFF Report Warns

Medicare's yearly window to review coverage is open now and closes December 7. A new report gives older Americans a strong reason to compare drug plans this year. On Friday, October 30, the health research group KFF published an analysis showing that many standalone Medicare drug plans will cost more in 2027.

KFF found that the average premium for standalone Part D prescription drug plans could climb about 50 percent, from about 34 dollars a month in 2026 to about 51 dollars a month in 2027, for people who keep their current plan. KFF said about 76 percent of enrollees who do not get low income help, roughly three in four, would pay a higher premium in 2027 if they make no changes during open enrollment.

The report also found that no standalone drug plan will offer a zero dollar premium in 2027. KFF said about 4 million people who pay nothing today would have to start paying something. Among the eight plans sold nationwide, KFF projected that average monthly premiums will range from about 6 dollars a month to about 204 dollars a month, so the plan you pick makes a big difference.

KFF pointed to a federal program that is ending as one reason for the higher prices. A temporary program called the Part D Premium Stabilization Demonstration, which helped hold down standalone drug plan premiums, is set to end for 2027 rather than continue another year, and KFF said that choice likely pushed premiums higher. KFF noted the real average could end up lower than 51 dollars if many people shop around and switch to cheaper plans.

Other costs are moving too. KFF said the most a standalone plan can charge as a yearly deductible rises to 700 dollars in 2027, up from 615 dollars in 2026, and the average deductible is set to climb as well. For comparison, KFF said drug coverage inside many Medicare Advantage plans is projected to average only about 9 dollars a month.

The practical step is to read any notice your plan mailed you and compare your options before December 7. Check whether your doctors, hospitals, and medicines are still covered, and look past the premium at other costs. Think twice before dropping drug coverage, because a long gap can add a lasting late penalty. Free, unbiased help is available at Medicare.gov, by calling 1-800-MEDICARE, or through your State Health Insurance Assistance Program, known as SHIP.