Medicare Advantage Premiums Fall 16.5% for 2027 While Part D Deductibles Rise 30%
- CMS projected on 28 September 2026 that the weighted average monthly Medicare Advantage premium will fall from $14.37 in 2026 to $12.00 in 2027, a 16.5% decline. For MA plans with drug coverage, the average Part D premium after rebates falls from $11.32 to $7, down 38%.
- Standalone Part D plan premiums rise from $35.09 to $36. CMS says 88% of beneficiaries without low-income subsidies can get a basic Part D plan for $10.30 a month or less, and 93% an enhanced plan for under $6.
- MA enrollment is projected at 34 million, 47.4% of all Medicare enrollees. More than 99% of beneficiaries will have at least one MA plan and 97% at least ten. Open enrollment runs from 15 October to 7 December.
- Healthcare Dive’s reading of CMS’s 2027 plan data shows MA plans slipping from 5,553 to 5,532, average maximum out-of-pocket limits up 10% and Part D deductibles up 30%. Oppenheimer analyst Michael Wiederhorn said most plans are looking to recover margins, with growth less of a focus.
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The premium headline is real, but part of the cost has moved from the monthly bill to the point of care.
- Premiums down, exposure up. A lower monthly premium alongside a 10% rise in the out-of-pocket maximum and a 30% rise in Part D deductibles means beneficiaries pay less when well and more when they need care. CMS’s release leads with the first and does not mention the second.
- For drug makers, the deductible matters more than the premium. Higher Part D deductibles raise what patients pay at the pharmacy early in the plan year, before coverage takes over. That weighs most on branded drugs and new launches in the first months of 2027.
- Plans are managing margin, not growth. A near-flat plan count, stable benefits and analysts describing margin recovery point to insurers holding position. The enrollment projection of 34 million, about 47% of Medicare, suggests MA’s share has stopped rising for now.