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Medicare Part D in 2027: Average Premiums, Costs, and the Drug Cap

by

Skyler Abilla

Medicare Part D in 2027: Average Premiums, Costs, and the Drug Cap

The average stand-alone Part D premium is $36 in 2027, while the Part D premium inside Medicare Advantage plans falls to $7. Here is how the numbers compare and what to check.

Medicare Part D 2027: Premiums and Costs

Medicare Part D in 2027: What the Average Premium Really Looks Like

Stand-alone drug plans and drug coverage inside Medicare Advantage are heading in different directions. Here is how to read the numbers.

$36
Average monthly premium for stand-alone Part D plans in 2027
$7
Average Part D premium inside Medicare Advantage plans in 2027, down from $11.32
$2,100
Yearly out-of-pocket cap on Part D drugs in 2026

Stand-alone drug plans

Stand-alone Part D plans, called PDPs, go with Original Medicare. CMS says the average monthly premium rises from $35.09 in 2026 to about $36 in 2027, an increase of less than $1. CMS also says 88% of people who do not get Extra Help can find a basic plan for $10.30 a month or less, and 93% can find an enhanced plan for under $6.

Drug coverage inside Medicare Advantage

If your Medicare Advantage plan includes drug coverage, the drug part of your premium is averaging $7 a month in 2027 after rebates, down from $11.32 in 2026, a drop of 38%. That does not mean every plan is cheaper. It is an average across thousands of plans.

The yearly cap on drug costs

Since 2025, Part D has had a yearly cap on what you pay out of pocket for covered drugs. It is $2,100 in 2026 and is adjusted each year. Look up the 2027 amount in Medicare Plan Finder or your plan's materials. You can also ask to spread your drug costs into monthly payments through the Medicare Prescription Payment Plan.

The premium is only part of the cost

A plan with a low premium can still have a deductible, high copays on the drugs you take, or a pharmacy network that does not include your pharmacy. Always check each of your prescriptions in the plan's formulary and see what tier it sits in. Plans change their formularies every year, so last year's plan may not cover this year's drugs the same way.

What is ending

CMS says its Premium Stabilization Demonstration, which helped hold down Part D premiums, is set to be discontinued in 2027. That is one reason to compare plans now instead of letting your plan renew automatically.

Talk to a local agent

Skyler Abilla is a licensed Medicare agent in Bluffton. Call (843) 284-6815 or book a free call and bring your medication list.

Open enrollment runs October 15 to December 7, 2026. Drug plans can change every year, so check your medications before December 7.
Average Monthly Part D Premium: 2026 vs. 2027

Source: CMS press release, "Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027," September 28, 2026.

A note on this data: Premiums are national enrollment-weighted averages from CMS. Plans in your area will differ. The $2,100 cap is the 2026 amount; confirm the 2027 amount in Medicare Plan Finder.

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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