KEY TAKEAWAYS
· Medicare Part B costs are expected to rise in 2027.
· A temporary Part D premium stabilization program ends.
· Negotiated prices for 15 high-cost drugs take effect in January.
Higher premiums, changing drug costs, and plan updates could affect what you pay for Medicare in 2027. Here’s what you need to know:
1. Part B Costs Are Expected to Rise
Most people with Medicare Part B can expect to pay a little more next year. The standard Part B premium is projected to increase from $202.90 per month in 2026 to $209.50 in 2027, according to the 2026 Medicare Trustees Report. The annual Part B deductible is also projected to increase, from $283 to $292.
While these are projections, not final amounts, they give you a useful idea of where Medicare costs may be headed.
2. 2027 COLA Projections
For many people, an increase in Medicare costs can eat into some of the extra money provided by the annual Social Security cost-of-living adjustment, or COLA. The Senior Citizens League currently projects a 3.6 percent COLA for 2027, which would add roughly $70 to the average monthly benefit.
But don't make your 2027 budget based on projections alone. Keep an eye out for the official Social Security COLA announcement later this year.
3. Fluctuating Part D Costs
If you have Medicare prescription drug coverage, this is one area you'll want to watch closely.
The Centers for Medicare and Medicaid Services (CMS) announced that the national base beneficiary premium for Medicare Part D will be $41.33 in 2027, up from $38.99 in 2026. However, your actual premium will vary based on the plan you choose.
The Part D annual out-of-pocket limit is expected to increase from $2,100 in 2026 to $2,400 in 2027, and the standard Part D deductible is projected to reach $700.
When comparing Part D plans this enrollment season, look beyond the premium. Check the deductible, whether your medications are covered, what you'll pay for each prescription, and whether your preferred pharmacy is in the plan's network.
4. Part D Premium Stabilization Program Ends
Another important change involves the ending of the Part D Premium Stabilization Demonstration. The temporary program was created to help limit large premium increases as insurers adjusted to changes in the Part D benefit.
CMS determined that plan sponsors now have enough experience with the redesigned Part D program to accurately set their own prices without additional federal support. Therefore, the program will end after 2026.
5. Lower Negotiated Prices Arrive for More Drugs
Here's one change that could bring some relief at the pharmacy counter.
Starting January 1, 2027, negotiated Medicare prices take effect for 15 high-cost drugs selected during the second round of Medicare drug-price negotiations. Some of those selections include more than one product sold under different brand names.
The medications include:
· Ozempic, Rybelsus and Wegovy
· Trelegy Ellipta
· Xtandi
· Pomalyst
· Ibrance
· Ofev
· Linzess
· Calquence
· Austedo and Austedo XR
· Tradjenta
· Xifaxan
· Vraylar
· Janumet and Janumet XR
· Otezla.
These medications are used for a wide range of health conditions, including diabetes, cardiovascular disease, cancer, lung disease, and autoimmune conditions.
CMS reports a negotiated 2027 price of $274 for a 30-day supply for the group containing Ozempic, Rybelsus, and Wegovy, compared with a 2024 list price of $959.
While these savings are a win for those who need these drugs, not everyone will save the same amount. What an individual pays depends on factors such as their prescription, Medicare coverage, and the plan's cost-sharing rules.
6. The Medicare GLP-1 Bridge Continues
Some beneficiaries using weight-management medications may also have access to lower costs through a temporary Medicare program. The Medicare GLP-1 Bridge began July 1, 2026, and is scheduled to continue through the end of 2027. The program provides certain GLP-1 medications to eligible Part D beneficiaries for a $50 copay.
Not everyone with Medicare Part D qualifies for the program. Eligibility requirements apply, so beneficiaries should check Medicare's official rules rather than assume they qualify.
7. Your Medicare Advantage Plan Could Change
If you have a Medicare Advantage plan (Part C), don't assume your current plan will look the same in 2027.
Medicare Advantage insurers can change premiums, copays, drug coverage, provider networks, and extra benefits from one year to the next. An insurer may also stop offering a particular plan in your area.
Unfortunately, this is the reality for some people enrolled in Medicare Advantage plans through Humana. Humana announced they will be dropping 600,000 Medicare Advantage plans in 2027. This could be a larger trend among Medicare Advantage carriers, but so far Humana has made the biggest announcement.
That's why the Annual Notice of Change (ANOC) you receive from your plan is worth a careful read. It explains what will be different in the coming year, including plan terminations.
Reminder: The Medicare Annual Enrollment Period (AEP) runs from October 15 through December 7. During this period, beneficiaries can make several coverage changes, including switching Medicare Advantage plans or changing Part D coverage.
Don't Put Medicare on Autopilot
With all these changes, one of the most important things you can do is simply review your coverage. A plan that worked well for you in 2026 may still be a good choice in 2027. But it might not be.
When your Annual Notice of Change arrives this month, don't toss it into a pile for later. Take a few minutes to see what's changing and get help if you need it.
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