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Medicare Advantage in 2027: Average Premium Falls to $12, but You Have Fewer Plans

by

Skyler Abilla

Medicare Advantage in 2027: Average Premium Falls to $12, but You Have Fewer Plans

CMS says the average Medicare Advantage premium drops to $12.00 in 2027, but the typical person will see fewer plans to choose from. Here is what changed and what to check.

Medicare Advantage 2027: Premiums and Plan Choices

Medicare Advantage in 2027: The Average Premium Falls to $12, but Choices Shrink

Premiums look better on paper. The catch is that many people will see fewer plans to pick from, and some will have to switch.

$12.00
Average monthly Medicare Advantage premium in 2027, down from $14.37
34M
People CMS projects in Medicare Advantage in 2027
35
Average plans available per person in 2027, down from 39

What CMS announced

On September 28, 2026, CMS said the average monthly premium for Medicare Advantage plans will fall from $14.37 in 2026 to $12.00 in 2027, a 16.5% drop. That figure covers Medicare Advantage plans with drug coverage and special needs plans. CMS also projects about 34 million people in Medicare Advantage next year, roughly 47.4% of everyone enrolled in Medicare.

Why "47%" and "55%" are both correct

You may see a higher number elsewhere. KFF reports that 35.2 million people, or 55% of eligible beneficiaries, were in Medicare Advantage in 2026. KFF counts only people who have both Part A and Part B. CMS counts everyone enrolled in Medicare. Both numbers show the same trend: more than half of people with Parts A and B now choose a private plan.

Fewer plans to choose from

CMS says more than 99% of beneficiaries still have at least one Medicare Advantage plan, and 97% have ten or more. But KFF finds the typical person will have 35 plans to choose from in 2027, down from 39 in 2026. The nationwide plan count is about flat, 5,553 in 2026 and about 5,532 in 2027, so the change is in which plans serve which counties.

What happens if your plan changes

CMS says about 8 in 10 Medicare Advantage members can stay in their current plan with the same or a lower premium. That leaves about 2 in 10 who will see a higher premium or have to move. If your plan leaves your county, you will get a letter and a special enrollment period. For one local example, see our article on BlueCross leaving Beaufort County.

Do not just look at the premium

CMS expects extra benefits like dental, vision, and hearing to remain stable overall. That is a national average. Individual plans still change what they cover. Compare each plan's doctors, drugs, yearly out-of-pocket maximum, and extra benefits before you decide.

Talk to a local agent

Skyler Abilla is a licensed Medicare agent in Bluffton. Call (843) 284-6815 or book a free call to see what is available in your ZIP code.

Open enrollment runs October 15 to December 7, 2026. Changes you make take effect January 1, 2027.
Average Number of Medicare Advantage Plans Available per Person

Source: CMS press release, September 28, 2026; KFF, "Medicare Advantage in 2026: Enrollment Update and Key Trends."

A note on this data: Premium and plan-count figures are national averages from CMS and KFF. Your own options depend on your county and ZIP code. Enrollment shares differ because CMS and KFF count different groups of people.

This article is for educational purposes only. Abilla Advisors does not offer every plan available in your area. For information on all of your options, contact Medicare.gov, 1-800-MEDICARE, or your State Health Insurance Assistance Program (SHIP). This content is not connected with or endorsed by the U.S. Government or the federal Medicare program.

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