The average monthly premium for a Medicare Advantage plan will fall to about $12 in 2027, down from $14.37 this year, the Centers for Medicare & Medicaid Services announced on Sept. 28. The drop of about 16.5% comes two weeks before Medicare open enrollment, which runs from Oct. 15 to Dec. 7.
About 34 million people are expected to be enrolled in Medicare Advantage next year, and for them the headline number is only a starting point. An average premium says little about whether a specific plan still covers a person's cardiologist, a daily inhaler, or the nearest hospital. Seniors whose plan is ending do not have the option of staying put; they must choose new coverage.
New CMS Numbers Behind the 2027 Premium Drop
CMS said the drug coverage portion of Medicare Advantage plans will average about $7 a month, down from $11.32. Stand-alone Part D drug plans, used mostly by people in Original Medicare, will rise slightly, from $35.09 to about $36 a month.
The agency expects 47.4% of the Medicare population to be enrolled in Medicare Advantage in 2027. More than 99% of beneficiaries will have at least one plan available, and 97% will have 10 or more options. The total number of plans slips from 5,553 to 5,532. CMS also said about 8 in 10 current Medicare Advantage members can keep their plan at the same or a lower premium.
For people in Original Medicare, CMS said 88% of beneficiaries who do not receive low-income help will be able to choose a basic stand-alone Part D plan costing $10.30 a month or less. Separately, under CMS's 2027 Part D parameters, the annual drug deductible rises to $700 and the yearly out-of-pocket cap on covered drugs rises to $2,400.
"CMS is fighting to keep high-quality care options affordable and accessible for the millions of beneficiaries who rely on Medicare Advantage and Part D prescription drug plans," CMS Administrator Mehmet Oz, M.D., said, according to Fierce Healthcare. The premium figures are weighted averages, so individual plans may still raise their premiums.
Plan Exits Hit Florida, Ohio, and Illinois Hardest
Stable national totals hide sharp local losses. Florida will drop from 611 Medicare Advantage plans to 560, the largest decline of any state, according to CMS state data compiled by Becker's Payer Issues. Ohio falls from 212 plans to 180, and Illinois from 157 to 136. Plan options shrink in 29 of 51 jurisdictions.
By percentage, Wyoming loses 43% of its plans, falling from 14 to eight. Washington, D.C., and Maryland each lose about a quarter. That matters for seniors in areas such as Miami, Jacksonville, Columbus, Chicago, and Baltimore, where a familiar plan may simply disappear.
MedicalDaily previously reported that insurers are trimming 2027 benefits and exiting markets. Humana's exits alone affect about 600,000 members. Plans that are leaving must send members a nonrenewal notice by Oct. 2. Those members can switch during open enrollment and also have a special enrollment period that runs from Dec. 8 through the end of February 2027.
Four Checks Before Switching Plans
The first check is the doctor network. Online directories are sometimes out of date, so calling the doctor's office and asking whether it will accept a specific plan in 2027 is more reliable. Some large health systems are also ending contracts with certain insurers next year.
The second is the drug list. Every prescription should be entered into the Medicare Plan Finder to confirm coverage, cost tier, pharmacy network, and any prior authorization rules. A plan with a $0 premium can cost more over a year if a key medication sits on a higher tier.
The third is the out-of-pocket maximum, the most a person pays for covered medical care in a year. For someone expecting surgery, cancer treatment, or frequent specialist visits, that cap may matter more than the monthly premium.
The fourth is whether the current plan is continuing at all. Plans were required to deliver 2027 Annual Notices of Change by Sept. 30. Anyone who has not received one can call the plan's member services line.
Help for Seniors and Family Caregivers
Adult children often help parents sort through these choices, and many start too late. Gathering a current medication list, doctor names, and last year's medical bills before Oct. 15 can make comparison faster and reduce the risk of a rushed decision in December.
Free, unbiased counseling is available through each state's State Health Insurance Assistance Program and at 1-800-MEDICARE. Seniors should be cautious with unsolicited calls or mailers promising extra benefits and should never share a Medicare number with an unknown caller.
People who leave Medicare Advantage for Original Medicare may face medical underwriting when buying a Medigap policy in many states. Members whose plan is leaving their area, however, have a guaranteed right to buy certain Medigap policies, starting 60 days before their coverage ends and lasting 63 days after. That makes the timing of a switch important.
Satisfied enrollees, whose doctors and drugs remain covered and whose costs have not risen, may not need to change anything. For them, the main task is confirming that before the window closes on Dec. 7. Changes take effect Jan. 1, 2027.
Key Questions Answered
What is the average Medicare Advantage premium for 2027? CMS projects about $12 a month, down from $14.37 in 2026.
When is Medicare open enrollment? Oct. 15 through Dec. 7, 2026, with changes taking effect Jan. 1.
Are Part D premiums going up? Stand-alone Part D plans rise slightly to about $36 a month on average, while the drug portion of Medicare Advantage plans falls to about $7.
Which states are losing the most plans? Florida, Ohio, and Illinois lose the most plans by number, and Wyoming loses the largest share.
What if my plan is leaving? You should receive a nonrenewal notice by Oct. 2, and you can choose new coverage during open enrollment or a special enrollment period that runs through February.
Where can seniors get free help? Their State Health Insurance Assistance Program or 1-800-MEDICARE.
Published by Medicaldaily.com
