Medicare Advantage and Medicare Prescription Drug Plan Premiums Expected to Remain Stable in 2027
CMS projects that the average Medicare Advantage premium will fall from $14.37 per month in 2026 to $12 in 2027. The average premium for stand-alone Part D plans is expected to rise slightly to about $36 per month.
Source: Cms ·
Grace's Take
A 16.5% drop in Medicare Advantage premiums signals that your largest healthcare cost in early retirement could be meaningfully lower than you budgeted. If you're planning to retire before age 65, this matters less now—but for those targeting 65+, lower Advantage premiums free up cash flow you might redirect toward catch-up retirement contributions or Roth conversions in your final working years. Open Enrollment runs through December 7, so current retirees have time to lock in these savings. Worth checking whether your current plan choice still makes sense, or if the premium savings create room in your projections to accelerate other retirement goals.
- •Average Medicare Advantage premiums are projected to decrease 16.5%.
- •Average premiums for stand-alone Part D plans are projected to increase by less than $1 monthly.
- •Medicare Open Enrollment begins October 15 and ends December 7, 2026.
The national averages are favorable, but plan-specific costs, formularies, provider networks, and out-of-pocket limits still need to be checked before enrollment.