The Centers for Medicare & Medicaid Services (CMS) just announced that average Medicare Advantage premiums are expected to fall in 2027. But before assuming your costs are headed down, there’s an important point to understand: these figures are national averages. Your premium, benefits, prescription costs and provider network will depend on the specific plan available where you live.
That makes reviewing your coverage during the Medicare Annual Enrollment Period (AEP) especially important this year.
Medicare Advantage Premiums Expected to Fall
CMS projects that the average monthly premium across Medicare Advantage plans will decrease from $14.37 in 2026 to $12 in 2027, a decline of about 16.5%. This average includes Medicare Advantage plans with prescription drug coverage and Special Needs Plans (SNP).
For Medicare Advantage plans that include prescription drug coverage, the prescription drug portion of the average premium is projected to decline even more. After Medicare Advantage rebates are applied, CMS estimates the average will fall from $11.32 per month in 2026 to $7 in 2027—a 38% decrease.
CMS also expects supplemental benefits, including dental, vision and hearing benefits, to remain generally stable for 2027.
Those numbers sound encouraging, but a lower average premium doesn't necessarily mean your plan will cost less. Medicare Advantage premiums, copays, deductibles and other out-of-pocket costs vary from plan to plan.
Plenty of Medicare Advantage Choices Remain
Medicare Advantage continues to represent a significant part of the Medicare program. Based on estimates submitted by insurers, CMS projects that approximately 34 million people will enroll in Medicare Advantage in 2027, representing about 47.4% of the Medicare population. But actual enrollment could ultimately be higher.
Plan availability is also expected to remain broad. More than 99% of Medicare beneficiaries are projected to have access to at least one Medicare Advantage plan, while 97% will have 10 or more plans available in their area.
A Lower Premium Doesn't Always Mean a Better Plan
Seeing average premiums decline may be reassuring, but choosing a Medicare plan based on the monthly premium alone could be a mistake.
A plan that costs less each month may charge more when you visit a specialist, receive certain treatments or fill prescriptions. Your doctors and hospitals may also participate in one plan's network but not another. Deductibles, copayments and annual out-of-pocket limits can differ as well.
Instead of asking, “Which Medicare plan has the lowest premium?”, look at the bigger picture. A lower premium doesn't always mean a better plan!
Are your doctors and specialists in the network? Are your medications covered? What could you pay if you need frequent medical care? Are the dental, vision or hearing benefits useful to you? And, importantly, what has changed in your current plan for 2027?
CMS estimates that roughly 8 in 10 current Medicare Advantage beneficiaries will be able to remain in their existing plan in 2027 with the same or a lower premium. Even so, reviewing your coverage before automatically renewing can help you understand whether your current plan still fits your needs.
The Medicare Annual Enrollment Period Begins October 15
The Annual Enrollment Period runs from October 15 through December 7.
During this period, people with Medicare can join, switch or drop Medicare Advantage and Prescription Drug plans. Changes made during AEP generally take effect January 1.
Even if you're happy with your current coverage, don't assume that what worked in 2026 will automatically be the right fit for 2027. Plans can change. Your doctors can switch networks. And your healthcare needs can change, too.
Once the Annual Enrollment Period ends, your opportunities to change coverage may be limited. That's why reviewing your options before December 7 matters.
Don't Let a Lower Premium Keep You from Looking Closer
The projected decline in Medicare Advantage premiums is encouraging, but national averages don't determine what you will pay.
The plan with the lowest premium may not be the plan that saves you the most money overall. And staying with the same plan without reviewing its 2027 changes could leave you with coverage that no longer fits your needs.
With the Annual Enrollment Period running from October 15 through December 7, now is the time to review your coverage, compare your options and make sure your plan still works for your healthcare needs and budget.
Have questions about Medicare or need help comparing your plan options? AMAC’s Medicare Advisory Service is here to help. Call 1-855-611-4856 to speak with a licensed Medicare advisor.
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