More choice. More Value. Medicare delivers again in 2027
Medicare Advantage and Part D plans continue to offer strong value, broad plan choice, and enhanced prescription drug protections for beneficiaries.
2027 Medicare market highlights
97% of beneficiaries will have access to 10 or more Medicare Advantage plans
Average Medicare Advantage premiums are projected to decrease
Nearly all beneficiaries will continue to have access to $0-premium MAPD plans
Part D out-of-pocket costs remain capped at $2,400
Additional drugs will be included in Medicare price negotiations
With the recent CMS release of final plan terms, 2027 is shaping up to be another favorable year for retiree choice and value in the individual Medicare market. The 2027 annual enrollment period runs from October 15 through December 7. Let’s take a look at the market by plan type:
Medicare Advantage-Prescription Drug (MAPD) Plans
Medicare beneficiaries will continue to enjoy a wide range of plan choice, with 97% expected to have access to 10 or more Medicare Advantage plans. CMS projects that the average monthly premium across all plans will drop from about $14 in 2026 to $12 in 2027. Almost all seniors will continue to have access to plans with $0 premium. While some carriers have reduced their offerings in certain areas and trimmed supplemental benefits in some plans, overall the Medicare Advantage program continues to meet the needs of more than 35 million Medicare beneficiaries.
Part D prescription drug coverage
Part D prescription drug coverage remains significantly stronger than it was just a few years ago, thanks to enhancements that took effect in 2025. Annual out of pocket costs are limited to $2,400, up from a $2,100 cap in 2026. New federally negotiated prices on high cost drugs took effect in 2026 and will expand to include more drugs in 2027.
Most Medicare Advantage plans include Part D prescription drug coverage, with low-cost premiums as outlined above. Part D Prescription Drug Plans (PDPs) can also be purchased on a standalone basis for Medicare enrollees not electing a Medicare Advantage plan (e.g., Medigap enrollees). Premiums for these standalone plans are projected to rise slightly to about $36 per month in 2027. Nearly nine out of ten non-low income beneficiaries will have access to PDPs with premiums of about $10 per month or less.
All Part D enrollees can access federally subsidized coverage for GLP-1 drugs to treat obesity under the new Medicare GLP-1 Bridge program which started on July 1, 2026 and is slated to run through the end of 2027. Pre-authorization and clinical requirements apply under the Bridge program which operates outside of the Part D plan.
Medicare supplement plans
While CMS’s annual plan release focuses primarily on Medicare Advantage and Part D offerings, many retirees continue to choose Medicare Supplement (Medigap) coverage. About 14 million seniors enjoy the flexibility and rich coverage under Medigap plans offered by private insurers to help pay out of pocket costs under original Medicare. The recent CMS release does not include information on Medigap plans, and these plans are not eligible for annual open enrollment rights applicable to Medicare Advantage and Part D plans. Seniors can enroll in a Medigap plan without restriction when first electing Medicare. Premiums vary by factors including region, insurer, plan and age.
It pays to assess your options annually
With significant changes in coverage, especially under Part D, it pays for Medicare beneficiaries to evaluate their options during the upcoming Medicare annual enrollment period to ensure their 2027 coverage best meets their needs. Annual enrollment gives beneficiaries an opportunity to compare plans and switch coverage if a different option better meets their needs. Medigap enrollees can also move to an MAPD plan during annual enrollment. While annual enrollment does not apply to Medigap plans, current MAPD enrollees may be able to move to a Medigap plan at any time during the year, subject to medical underwriting conditions.
