Medicare changes each year, and 2027 brings several important updates involving prescription drug costs, Medicare Advantage plans, negotiated drug prices, and other benefits. Understanding these changes can help beneficiaries prepare for healthcare expenses and compare coverage options during Medicare Open Enrollment.

Higher Part D Deductible

In 2027, the maximum deductible for Medicare Part D prescription drug plans will increase from $615 in 2026 to $700.

Some plans may offer a lower deductible or no deductible at all, so actual costs will depend on the individual plan.

Part D Out-of-Pocket Limit Increases

Medicare Part D will continue to provide an annual limit on what beneficiaries pay out of pocket for covered prescription drugs.

The limit will increase:

• 2026: $2,100
• 2027: $2,400

After a beneficiary reaches the applicable out-of-pocket threshold, there is generally no additional cost sharing for covered Part D drugs during the catastrophic coverage phase.

More Negotiated Drug Prices Take Effect

Medicare's Drug Price Negotiation Program continues expanding in 2027.

Negotiated prices for another group of selected prescription medications will take effect on January 1, 2027. These drugs include medications used to treat conditions such as cancer, asthma, chronic obstructive pulmonary disease, and other health conditions.

How much an individual saves will depend on the medication, insurance plan, pharmacy, and other coverage factors.

Medicare Advantage Premiums

CMS projects that the average monthly Medicare Advantage premium will decrease in 2027.

The weighted average monthly premium across Medicare Advantage plans is projected to fall from approximately $14.37 in 2026 to $12 in 2027.

Actual premiums and benefits vary by plan and location. Some Medicare Advantage plans may continue offering $0 additional monthly premiums, while others may charge more.

Medicare Part D Premiums

Average premiums for standalone Medicare Part D plans are expected to remain relatively stable.

CMS projects that the average standalone Part D premium will be approximately $36 per month in 2027, compared with $35.09 in 2026.

However, this is only an average. Individual plans may have significantly different premiums, deductibles, formularies, and pharmacy networks.

Medicare GLP-1 Bridge Continues

The temporary Medicare GLP-1 Bridge Program is scheduled to continue through December 31, 2027.

Eligible Medicare Part D beneficiaries may receive certain covered GLP-1 medications for weight management with a $50 copayment for a one-month supply.

Eligibility depends on factors such as body mass index, certain health conditions, Medicare drug coverage, and other program requirements.

Prescription Payment Options Continue

The Medicare Prescription Payment Plan continues to give people with Part D the option to spread eligible out-of-pocket prescription expenses across monthly payments instead of paying the full amount at the pharmacy at once.

This program does not reduce the total cost of medications, but it may make larger prescription expenses easier to manage throughout the year.

Review Your Medicare Plan for 2027

Medicare Advantage and Part D plans can change their:

• Monthly premiums
• Deductibles
• Copayments and coinsurance
• Prescription drug formularies
• Pharmacy networks
• Provider networks
• Supplemental benefits

A plan that worked well in 2026 may not necessarily offer the same coverage or costs in 2027.

Medicare Open Enrollment runs from October 15 through December 7, 2026 for coverage beginning January 1, 2027. Beneficiaries can use this period to compare their current coverage with available 2027 options.

What About Medicare Part A and Part B Costs?

Medicare Part A and Part B premiums, deductibles, and coinsurance amounts are updated annually. As of October 1, 2026, the final standard 2027 Part A and Part B cost amounts have not yet been published.

Beneficiaries should check Medicare's official information later in the year for finalized 2027 costs.

Final Thoughts

Medicare changes for 2027 include a higher Part D deductible and out-of-pocket threshold, additional negotiated prescription drug prices, updated Medicare Advantage and Part D premiums, and continued access to programs designed to manage prescription costs.

Because Medicare plans and costs can change annually, beneficiaries should review their Annual Notice of Change and compare 2027 options during Open Enrollment. Taking time to review premiums, medications, providers, and benefits can help ensure that coverage continues to meet individual healthcare needs.