If you buy a standalone drug plan to go with Original Medicare, your premium is likely to go up in January. The federal money that has held those premiums down for two years runs out on December 31, 2026, and CMS isn't renewing it. All amounts below are in US dollars and current as of mid-September 2026.
Why Medicare Part D premiums 2027 are expected to rise
The Inflation Reduction Act rebuilt the Part D benefit starting in 2025. It capped what enrollees pay out of pocket, which shifted more of the cost onto insurers. To stop insurers from passing that shock straight into premiums, CMS ran a temporary Part D Premium Stabilization Demonstration for standalone prescription drug plans (PDPs).
KFF's breakdown of the program shows how it worked. In 2025, participating plans got a $15 cut to the base premium, and no plan's premium could rise more than $35 a month. In 2026 the cut shrank to $10 and the cap loosened to $50. Over the two years the program cost $9.8 billion. KFF estimates it lowered the average PDP premium by $26 a month in 2025 and $16 a month in 2026.
On July 28, 2026, CMS said the program would end. Its fact sheet on the 2027 bids says insurers now have enough experience with the redesigned benefit to price plans without help. So for 2027 there's no subsidy and no cap on how much an individual plan's premium can jump.
CMS Administrator Mehmet Oz has said most enrollees in standalone plans will see increases of less than $10 a month, and some will pay less. KFF is more cautious and expects some PDP enrollees to face bigger increases than in recent years. The two claims fit together, since "most under $10" still leaves a large minority paying more.
The $41.33 figure, and what it isn't
Almost every article on Medicare Part D premiums 2027 quotes $41.33 as the Part D base premium for next year. It's up from $38.99 in 2026, a 6% rise, which is the most the law allows in a single year through 2029.
That number isn't your premium. The base beneficiary premium is a benchmark CMS calculates from insurers' bids. Your plan sets its own price, which can land far above or below it. The benchmark matters in two practical ways:
It drives the late enrollment penalty. If you went 63 days or more without creditable drug coverage after you first became eligible, the penalty is 1% of the base premium for each uncovered month, added to your premium for as long as you have Part D. A higher base premium means a slightly higher penalty.
It helps set the Extra Help benchmarks, which determine which plans low-income enrollees can join for $0.
Behind the benchmark, the national average monthly bid rose to $296.05, about 24% above 2026, according to Healthcare Dive's report on the CMS announcement. That jump reflects what insurers expect coverage to cost, and it's why analysts don't expect Medicare Part D premiums 2027 to track the 6% headline.
Who will notice the change
The demonstration only covered standalone PDPs, so the shift in Medicare Part D premiums 2027 mainly affects people who pair Original Medicare, usually with a Medigap policy, with a separate drug plan. KFF counts 24.9 million PDP enrollees in 2026, though that total includes employer group plans.
If you have a Medicare Advantage plan with drug coverage, this particular change doesn't apply to you. Those plans averaged about $8 a month for drug coverage in 2026, compared with $36 for standalone plans, because they can use Medicare Advantage rebates to buy down premiums. Your plan can still change its premium, formulary, or copays for other reasons, so read your notice anyway.
If you get Extra Help, the Part D Low-Income Subsidy, you're largely shielded from Medicare Part D premiums 2027 increases. Extra Help pays all or most of the premium for benchmark plans. The risk is that your current plan climbs above the benchmark for your region. If that happens, Medicare may reassign you to a $0 plan, or you'll owe the difference if you stay put.
Retiree coverage through a former employer follows the employer's own rules. Ask the plan administrator what 2027 looks like.
Deductible and out-of-pocket cap for 2027
The premium is one piece of your Medicare drug plan costs in 2027. CMS set the 2027 deductible and out-of-pocket cap in its CY 2027 rate announcement:
Standard Part D amount | 2026 | 2027 |
|---|---|---|
Base beneficiary premium (benchmark) | $38.99 | $41.33 |
Maximum deductible | $615 | $700 |
Annual out-of-pocket cap | $2,100 | $2,400 |
Premium subsidy from the demonstration | $10 cut, $50 cap on increases | None |
Plans can charge less than the maximum deductible, and some do. The out-of-pocket cap covers what you pay for covered drugs, including the deductible. It doesn't include premiums. Once you reach it, covered drugs cost you nothing for the rest of the year.
Here's a hypothetical example. Say you take a brand-name drug and meet your plan's full $700 deductible in January. After that, the standard benefit charges 25% coinsurance on covered drugs until your spending reaches $2,400. Someone on an expensive specialty drug could reach that cap by spring. In 2026 they'd have stopped at $2,100, so this year's change costs them up to $300 more, plus whatever their premium rises.
If a big bill early in the year is the problem, the Medicare Prescription Payment Plan spreads the same out-of-pocket total over interest-free monthly bills instead of reducing it. Every Part D and Medicare Advantage drug plan offers it, and you have to opt in.
What to do before Medicare open enrollment 2026 ends
Medicare open enrollment runs from October 15 to December 7, 2026. Any change you make then takes effect January 1, 2027. These are the dates and steps that matter:
Read your Annual Notice of Change. Plans must send it by September 30. It lists your plan's 2027 premium, deductible, and any drugs moved to a different tier or dropped from the formulary. This is where you'll find your actual Medicare Part D premiums 2027 figure, not a national average.
Watch for the plan landscape. CMS says it will publish the full 2027 Medicare Advantage and Part D plan list in mid-to-late September. Plan details then appear in the Medicare Plan Finder on medicare.gov.
Enter your drugs into Plan Finder. Premium alone is a bad way to choose. A plan that costs $15 more a month but covers your medication on a lower tier can easily save you money over a year. Compare total estimated annual cost, and check that your pharmacy is in network.
Check Extra Help eligibility if money is tight. Income limits are set at about 150% of the federal poverty level, with an asset test. You can apply through Social Security's Extra Help page or by calling 1-800-772-1213.
If you do nothing, most plans renew automatically. That's fine if your notice shows a small change. For standalone plan enrollees this year, doing nothing is the riskier choice, because the tool that kept premium jumps under $50 no longer exists.
Your Social Security raise pays for some of this. The 2027 cost-of-living adjustment arrives in January, the same month the new Medicare Part D premiums 2027 rates take effect, and for anyone in a higher-priced standalone plan the two changes will partly offset each other.
Common questions about Medicare changes 2027
Will my Part D premium go up in 2027?
If you're in a standalone drug plan, probably yes. How much depends on your plan. CMS expects most people's Medicare Part D premiums 2027 increases to stay under $10 a month, but there's no longer a cap. Check your Annual Notice of Change.
Does this affect Medicare Advantage?
Not directly. The expiring demonstration only applied to standalone PDPs.
Is the $41.33 base premium what I'll pay?
No. It's a national benchmark used for penalties and subsidies. Your plan charges its own premium.
Where can I see my plan's Medicare Part D premiums 2027 amount?
In your Annual Notice of Change, which should arrive by September 30, and in Medicare Plan Finder once 2027 plans are posted.
When can I switch plans?
Between October 15 and December 7, 2026. People in Medicare Advantage also get a separate window from January 1 to March 31 to switch plans or go back to Original Medicare.