The Average Monthly Premium for Medicare Part D Stand-Alone Plans Is Projected to Increase by 50% From $34 to $51 in 2027 Unless Enrollees Switch to Lower-Cost Plans
A new KFF analysis finds that the average monthly premium for Medicare Part D coverage in stand-alone prescription drug plans (PDPs) will increase to $51 in 2027, up 50% from $34 in 2026, if current enrollees don’t switch into lower-premium plans during open enrollment, which runs through December 7.
The analysis of premium and cost-sharing requirements for Part D coverage in 2027 also finds that the projected average monthly premium of $51 for PDPs is more than five times higher than the drug coverage premium in Medicare Advantage plans that offer Part D coverage (MA-PDs), which is projected to average $9 per month next year. The estimated $17 increase in the average monthly PDP contrasts with an expected increase of less than $2 in monthly premiums for drug coverage through MA-PDs.
“With some plans increasing premiums substantially, the stakes are higher this year for people with Medicare stand-alone drug coverage if they sit on the sidelines during open enrollment,” said Juliette Cubanski, a vice president and director of the Program on Medicare Policy at KFF. “There are relatively low-premium PDP options, but people facing large premium increases need to take action if they want to avoid paying significantly more.”
Most PDP enrollees who are not receiving extra financial subsidies provided to low-income enrollees will pay higher premiums in 2027 if they don’t switch to cheaper plans, including more than 4 million enrollees who are currently enrolled in PDPs that charge zero premium. This is because there are no zero premium PDPs available in 2027.
Average monthly premiums for the eight national PDPs are projected to range from around $6 to $204 in 2027. The lowest-premium national PDP is Centene’s Wellcare Value Script Rx, with an average premium of $6.50 for 2027, up from $5.80 in 2026. The highest-premium national PDP is United’s AARP Medicare Rx Preferred, with an average monthly premium of $204.50, up from $126.00 in 2026.
The analysis also finds that most Part D enrollees will face a deductible of several hundred dollars for drug coverage in 2027, including 85% of MA-PD enrollees (up from 80% in 2026) and virtually all PDP enrollees (99.8%, up from 96% in 2026), based on enrollees keeping their current plans. In 2027, Part D plans are allowed to charge a deductible up to $700, an increase from $615 in 2026, but can charge a lower amount. On average, the Part D deductible in 2027 will be $643 for PDP enrollees (up from $540 in 2026) and $489 for MA-PD enrollees (up from $360 in 2026).
Most Part D enrollees also will face coinsurance rather than copayments for both preferred brands and non-preferred drugs, which can mean less predictable out-of-pocket costs.