Medicare drug plan premiums projected to rise 50% in 2027

Medicare beneficiaries enrolled in stand-alone prescription drug plans face significant cost increases in the upcoming year, according to a recent analysis by the healthcare research firm KFF. The study projects that the average monthly premium for these plans will jump from $34 in 2026 to $51 in 2027, representing a 50% increase.

The analysis, released on Oct. 30, 2026, indicates that approximately 10.4 million enrollees who do not receive low-income subsidies could be impacted by these higher costs if they remain in their current plans. Additionally, the average stand-alone plan deductible is expected to rise from $540 to $643.

Juliette Cubanski, vice president and director of the program on Medicare policy at KFF, emphasized the importance of proactive plan selection during the current open-enrollment period, which runs from Oct. 15, 2026, through Dec. 7, 2026. She noted that because some plans are increasing premiums substantially, beneficiaries must take action to compare options before coverage begins on Jan. 1, 2027.

The projected cost hikes are partly attributed to the conclusion of a three-year Premium Stabilization Demonstration pilot managed by the Centers for Medicare & Medicaid Services. That program, which ended in July 2026, provided $9.8 billion in federal subsidies to help suppress premium growth during 2025 and 2026. Data shows that there are no $0 premium stand-alone prescription drug plans available for the 2027 plan year, with national plan premiums expected to range between $6 and $204 per month.