Millions of Americans enrolled in Medicare prescription drug plans could face higher premiums and deductibles in 2027, according to a new analysis from KFF. The average monthly premium for stand-alone Medicare Part D plans is projected to reach $51, compared with $34 in 2026.
Average Part D premium could rise by 50%
KFF estimates that the average monthly premium for stand-alone Medicare prescription drug plans will increase by $17 next year. That would bring the average cost to $51 a month, compared with $34 this year.
Around 25 million Americans were enrolled in stand-alone Medicare Part D plans based on the latest enrollment figures. Prices vary widely between plans. Among eight prescription drug plans available nationwide, KFF estimates average monthly premiums ranging from $6 to $204 in 2027.
Medicare Advantage drug coverage remains cheaper on average
People enrolled in Medicare Advantage plans with prescription drug coverage face a different pricing picture. KFF estimates that drug coverage within these plans will average around $9 a month in 2027, up from approximately $7 this year.
Around 31 million people were enrolled in Medicare Advantage plans with prescription drug coverage. The figures highlight the wide difference between available Medicare options and the importance of comparing plans before the enrollment deadline.
KFF and government estimates differ
KFF’s projection is notably higher than the figure previously published by the Centers for Medicare and Medicaid Services. CMS estimated in September that the average monthly premium for stand-alone Part D plans would be around $36 in 2027, roughly $1 higher than in 2026.
The difference comes partly from the way the two estimates were calculated. KFF looked at June enrollment data and calculated costs for people who stay with their current plan. CMS’s estimate assumes that beneficiaries will switch plans during the 2027 enrollment period.
Deductibles are also expected to increase
Premiums are not the only cost that could rise. KFF estimates that the average deductible for a stand-alone Part D plan will reach $643 in 2027, compared with $540 in 2026. For Medicare Advantage plans with prescription drug coverage, the average deductible is projected at $489, up from $360 this year.
Some beneficiaries could also face higher costs for brand-name and non-preferred medicines, with certain plans using coinsurance rather than fixed copayments.
Seniors have until December 7 to review their plans
The Medicare annual open enrollment period runs through December 7. Beneficiaries can review their existing coverage and compare alternative plans before making a decision for 2027.
Juliette Cubanski, vice president and director of the Medicare policy programme at KFF, urged consumers to examine their options rather than automatically staying with their current plan.
A different plan could have a lower premium, deductible or prescription cost depending on an individual’s medicines and coverage needs.
Prescription drug costs remain a concern for retirees
Higher health care expenses are already putting pressure on some older Americans’ household budgets. Robert Lukas, a 72-year-old retired US Postal Service employee from New York, said his family’s health coverage takes up a substantial share of his retirement income.
His experience reflects wider concerns about the cost of health care among older Americans. For Medicare beneficiaries, comparing coverage before December 7 could therefore make a difference to the amount they spend on prescription drugs and insurance during 2027.
