As Medicare’s open enrollment period for 2027 begins, beneficiaries face significant changes in prescription drug coverage costs. The average monthly premium for Medicare Part D stand-alone plans is projected to rise to $51, a 50% increase from $34 in 2026.
This analysis, based on data from the Centers for Medicare & Medicaid Services, highlights the growing financial burden on enrollees. The $51 estimate assumes current enrollees remain in their plans, though actual premiums may be lower after accounting for plan switches during open enrollment.
Rising Premiums and Deductibles
Monthly premiums for stand-alone prescription drug plans (PDPs) are expected to be more than five times higher than those for Medicare Advantage prescription drug plans (MA-PDs) in 2027, at $51 versus $9. The average premium for PDPs is set to increase by $17, while MA-PDs will see a smaller rise of less than $2.
This disparity arises partly because MA-PD sponsors use rebate dollars from Medicare payments to reduce premiums and offer extra benefits, an option not available for PDPs. Additionally, nearly 80% of MA-PD enrollees paid no premium for drug coverage in 2026, further skewing the average.
Deductibles are also increasing. In 2027, 85% of MA-PD enrollees and 99.8% of PDP enrollees will face a deductible, up from 80% and 96% in 2026, respectively. The average deductible will be $643 for PDPs and $489 for MA-PDs, with the standard deductible increasing to $700.
Impact of Premium Stabilization Demonstration Discontinuation
In 2027, 76% of PDP enrollees without low-income subsidies will face higher monthly premiums if they remain in their current plans. This includes 4.1 million enrollees who currently pay no premium but will face higher costs next year due to the unavailability of zero-premium plans.
Among those facing increases, 2.4 million enrollees will see their monthly premiums rise by more than $50 if they stay in their current plans. In contrast, only 38,000 enrollees faced such large increases in 2026. The removal of the $50 cap on premium increases, previously in place due to the demonstration, has allowed for these larger adjustments.
For 2027, 55% of PDP enrollees without subsidies will pay less than $20 per month, but none will have a zero premium. Nearly 30% will pay $100 or more monthly, compared to 20% in 2026. Enrollees in specific plans, such as United’s AARP branded PDPs, face substantial increases if they do not switch plans, with premiums rising by 62% and 97% for AARP Medicare Rx Preferred and AARP Medicare Rx Saver, respectively.
Coinsurance and Cost Sharing
Most enrollees will face coinsurance rather than copayments for preferred and non-preferred drugs, leading to less predictable out-of-pocket costs. For preferred brands, 83% of MA-PD enrollees will have a median coinsurance of 20%, while 99.8% of PDP enrollees will face 25%.
Specialty drugs, costing over $1,080 per month, will have a median coinsurance of 25% for PDPs and 26% for MA-PDs.
Read Also: U.S. health experts warn of Medicaid cuts
In 2027, Centene’s Wellcare PDPs will introduce a new injectable drug tier with 15% coinsurance, offering some relief for enrollees in these plans.
The Trump administration’s decision to end the Part D Premium Stabilization Demonstration after 2026 has removed caps on premium increases, allowing some plans to raise premiums by more than $50 per month. This change significantly impacts enrollees who do not switch plans during open enrollment.
For example, United’s AARP Medicare Rx Preferred plan will increase its average monthly premium to $204.50, up from $126.00 in 2026. Similarly, Humana Premier Rx Plan will rise to $137.40 from $119.60.
In contrast, Centene’s Wellcare Value Script Rx and Wellcare Classic remain among the lowest-cost options, with average premiums of $6.50 and $10.90, respectively. Beneficiaries should review their coverage options during open enrollment to mitigate rising costs.
Premium Variations Across Regions and Plans
Monthly premiums for national PDPs show significant regional differences. Six of the eight national PDPs have a premium range of $90 or more across the 34 PDP regions.
For instance, United’s AARP Medicare Rx Preferred has an average premium of $204.50 but ranges from $136.70 to $264.50. Similarly, AARP Medicare Rx Saver averages $98, with a range from $10.30 to $235.30.
Humana Basic Rx, with an average premium of $16, varies from $6.30 to $169.60 across regions.
Deductible and Cost-Sharing Trends
MA-PD enrollees face a larger increase in average deductibles, up $128 (36%), compared to a $103 (19%) rise for PDP enrollees.
The standard Part D deductible increases from $615 in 2026 to $700 in 2027.
