Federal Policy
KFF Analysis Finds Medicare Drug Plan Premiums to Rise 50% in 2027
KFF analysis finds average premiums for stand-alone Medicare Part D drug plans will rise 50% in 2027, from $34 to $51 a month, though enrollees can avoid the increase by switching plans during open enrollment, which runs through Dec. 7. Medicare Advantage enrollees face much smaller increases, averaging under $2 more per month. KFF points to CMS's July decision to end early a subsidy program that had held down stand-alone premiums as a likely driver, and notes its projection differs sharply from CMS's own estimate of a $1 average increase. Deductibles and coinsurance requirements are also rising, adding to out-of-pocket exposure for the roughly 25 million people in stand-alone plans.
Why it mattersMedicare enrollees who fail to actively shop during open enrollment face sharply higher drug costs, while the CMS subsidy decision driving the increase has no direct Medicaid program effect but underscores federal drug-benefit financing volatility relevant to dual-eligible beneficiaries' coverage choices.