The Centers for Medicare & Medicaid Services projects that the average monthly premium for a Medicare Advantage plan will fall to $12.00 in 2027 from $14.37 this year, a drop of 16.5 percent. The agency released the figure on Sept. 28, ahead of the Medicare open enrollment period that runs Oct. 15 to Dec. 7. About 34 million people, or 47.4 percent of everyone on Medicare, are expected to be in an Advantage plan next year, CMS says.
The $12.00 is a weighted average across all Medicare Advantage plans, including plans that bundle drug coverage and special needs plans. It is a national number, not a price tag for any single plan. CMS says about eight in 10 Advantage members can keep their current plan at the same or a lower premium, which leaves some members facing a different premium or a different plan.
People in an Advantage plan should find the 2027 premium for their own plan and set it beside the $12.00 average and beside what they pay now. The Medicare Plan Finder lets people compare Medicare health and drug plans, including premiums, costs and benefits, and CMS says people who want to keep their current coverage generally do not need to re-enroll. Anyone who finds a higher premium has until Dec. 7 to switch.
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What the $12.00 average covers
Advantage plans that include drug coverage get their own number in the CMS announcement. Their average monthly Part D premium, after rebates, is projected to fall to $7 from $11.32, a 38 percent decrease. CMS also expects extras such as hearing, dental and vision benefits to stay stable.
“CMS is fighting to keep high-quality care options affordable and accessible,” said Dr. Mehmet Oz, the CMS administrator. He added that “by slashing handouts to big insurance companies, CMS is keeping premiums stable.”
The agency’s numbers show little loss of choice. The country had 5,553 Advantage plans in 2026 and about 5,532 are expected in 2027. CMS says 99 percent of beneficiaries can reach at least one Advantage plan and 97 percent can reach 10 or more.
Drug plan premiums move the other way
People who pair Original Medicare with a stand-alone drug plan face a small increase. CMS projects the total average monthly premium for those plans will rise by less than $1, from $35.09 in 2026 to $36 in 2027. The agency says 88 percent of beneficiaries who are not low-income can get a basic plan at $10.30 or less a month.
CMS ties the calmer market to the end of a temporary program. The Part D Premium Stabilization Demonstration, a voluntary program that held premiums down, was narrowed for 2026, and CMS plans to discontinue it in 2027.
Members with limited income and resources have a separate route. The release points readers to Medicare Savings Programs and to Extra Help, the program that pays toward drug costs. The Medicare.gov Extra Help page lists 2026 limits of income up to $23,940 and resources up to $18,090 for one person, and $32,460 and $36,100 for a married couple.
For 2027, the same page says people who qualify pay $0 for the plan premium and $0 for the deductible. Copays at participating pharmacies run up to $5.80 for each generic drug and up to $14.40 for each brand-name drug. Some people qualify automatically through full Medicaid, a Medicare Savings Program or SSI. Others apply through Social Security, and counselors at the State Health Insurance Assistance Program help with the application for free.
The Extra Help page adds two more details for 2027. Once total drug costs reach $2,400, people who qualify pay $0 for each covered drug. Anyone who also has full Medicaid and is in the Qualified Medicare Beneficiary program pays no more than $4.90 per covered drug. The page also says Extra Help waives the Part D late enrollment penalty while a person receives it.
Checking one plan before Dec. 7
An average speaks only to the premium. What a plan charges for a member’s own drugs, and whether that member’s doctors are in network, are separate questions that the plan’s 2027 documents answer. CMS notes that costs and benefits change every year, so the agency urges people to review their current coverage and compare 2027 options.
CMS puts this year’s average at $14.37 and next year’s at $12.00, and each is a blend of premiums across the roughly 5,532 plans expected for 2027 and the 5,553 offered this year. A member’s own plan can land well above or below either figure, which is why the notice from that plan is the number to read.
Help is available around the clock. CMS says 1-800-MEDICARE is open 24 hours a day, seven days a week, to help people compare plans and costs.
The premium figures are projections, and the Plan Finder holds the plan-by-plan numbers. A member whose 2027 notice shows a premium above this year’s, or above the $12.00 average, has until Dec. 7 to act on it.
Does the 2027 plan notice match the 16.5 percent drop?
A national average of $12.00 says little about the plan a member actually holds, and a higher 2027 premium or a pricier drug can slip past until the Dec. 7 switching deadline is gone.
Cut Your Medicare Bill is an 11-page guide built around ten moves to pay less for the same care. It starts with the fall plan check: compare plans by total yearly cost for the exact drugs a person takes. It also carries 2026 Medicare costs at a glance on one table, a baseline to hold a 2027 plan notice against.
Run the Medicare Advantage fall plan check with the cost table and worksheet in the guide →
This article was produced with AI assistance and edited for accuracy against the sources linked above.
