The changes affect people enrolled in stand-alone Medicare Part D plans, which provide prescription coverage primarily to beneficiaries receiving medical care through Original Medicare. With annual open enrollment running through December 7, beneficiaries have an opportunity to review their coverage before new rates take effect on January 1.
Medicare Part D Premiums Rise As Federal Support Ends
According to KFF, a nonprofit health policy research organization, the average monthly premium for stand-alone Medicare Part D plans will increase from $34 in 2026 to $51 in 2027 if beneficiaries remain in their current plans. That represents an additional $204 annually for the average enrollee.
The increase will not affect everyone equally. KFF found that approximately 10.4 million beneficiaries without low-income subsidies, representing three-quarters of that group, will pay higher premiums if they retain their existing coverage.
Premium differences between insurers are substantial. Among eight nationally available stand-alone plans, average monthly premiums range from $6.50 for Centene’s Wellcare Value Script Rx to $204.50 for United’s AARP Medicare Rx Preferred.
More than 4 million beneficiaries currently enrolled in stand-alone plans with no monthly premium will also face new charges in 2027, as zero-premium options will no longer be available to them.
One factor behind the increases is the expiration of the federal Part D Premium Stabilization Demonstration. The program helped insurers manage changes introduced under the Inflation Reduction Act, which shifted a greater share of prescription drug expenses onto insurance companies.
The program reduced premiums through federal subsidies and restrictions on annual increases. Its financial support declined in 2026 before the Centers for Medicare & Medicaid Services announced that the initiative would end after that year.
Federal estimates present a different picture. CMS expects average stand-alone Part D premiums to reach approximately $36 in 2027, compared with KFF’s $51 estimate. The difference reflects how enrollment changes may influence average costs, including beneficiaries switching to less expensive plans.
Higher Deductibles Add Pressure As Enrollment Deadline Approaches
Monthly premiums are only part of the financial changes affecting Medicare beneficiaries. Prescription drug deductibles are also increasing, potentially raising the amount patients pay before their coverage begins contributing toward medication costs.
According to USA Today, the average deductible for stand-alone Part D plans will reach $643 in 2027, compared with $540 in 2026. The maximum permitted deductible will increase from $615 to $700.
Beneficiaries receiving prescription coverage through Medicare Advantage face different costs. Their average drug deductible will increase from $360 to $489, while monthly drug coverage premiums are expected to average approximately $9.
Cost-sharing arrangements are changing as well. Many plans will require coinsurance rather than fixed copayments, meaning beneficiaries will pay a percentage of medication costs. This can make expenses less predictable, particularly for brand-name prescriptions.
According to Healthcare Dive, more than 4 million Medicare beneficiaries will have their existing Medicare Advantage or stand-alone prescription drug plans terminated at the end of 2026, requiring them to find new coverage.
Beneficiaries can compare premiums, deductibles, covered medications and pharmacy networks during open enrollment, which ends December 7. Those who change plans will have their new coverage begin January 1, 2027.
