Average monthly premiums for standalone Medicare Part D prescription drug plans are projected to jump 50% from $34 to $51 in 2027 if seniors remain on existing plans, according to KFF. Policy changes by the Trump administration ending premium capping early contributed to the spike. Over 10.4 million enrollees without subsidies face higher costs, and more than 4 million seniors lose zero-premium options. Options range from $6.50 to $204.50 monthly, while standard deductibles rise to $700.
Standalone Part D premium increases and ranges
- ▪Three-fourths of Medicare Part D enrollees who do not qualify for financial help, representing 10.4 million seniors, will pay higher premiums in 2027 if they do not change plans, according to KFF
- ▪More than 4 million seniors currently enrolled in zero-premium Medicare prescription drug plans face premium increases because no zero-premium standalone Part D plans are available in 2027, according to KFF
- ▪Average monthly premiums for standalone Medicare Part D prescription drug plans are projected to rise 50%, from $34 to $51 in 2027, if enrollees remain in their current Part D plans, according to KFF
Trump administration policy and forecasts
- ▪KFF noted that policy decisions by the Trump administration to end a Medicare Part D premium stabilization program early contributed to the rising cost of Medicare Part D coverage for 2027
- ▪The KFF's forecast of a $17 monthly average premium increase in 2027 is significantly more drastic than the Trump administration's projection of a less than $1 increase
Open enrollment and plan switching
- ▪KFF researchers emphasized that plan switching during open enrollment normally drives down average weighted premiums as enrollees move from existing plans to lower-cost alternatives
- ▪The CMS projected in September 2026 that average monthly Part D premiums would rise less than $1 in 2027, a calculation by the CMS KFF researchers noted may have accounted for open enrollment plan switching
- ▪Medicare open enrollment for 2027 coverage runs until December 7, 2026, with plan updates taking effect on January 1, 2027
Deductible and out-of-pocket cost changes
- ▪The standard Medicare Part D deductible will increase from $615 to $700 in 2027, affecting virtually all standalone plan enrollees and 85% of Medicare Advantage drug coverage enrollees, according to KFF
- ▪KFF reported that most Medicare Part D enrollees will face coinsurance instead of copays in 2027, leading to less predictable out-of-pocket costs for expensive and brand-name drugs
Plan exits and market turmoil
- ▪More than 4 million Medicare beneficiaries, including over 1 million in standalone Part D prescription drug plans, face coverage terminations in 2027, forcing them to find new plans during open enrollment
- ▪Benefits experts have been particularly insistent that seniors compare options during open enrollment for 2026 and 2027 as plan exits, benefit changes, and cost hikes throw the Medicare market into turmoil
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