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Medicare Advantage Premiums Projected to Drop 16.5% in 2027

By Drooid · Oct 13, 2026, 2:42 PM UTC · How we work

Summary

Story summary

The U.S. Centers for Medicare & Medicaid Services projects Medicare Advantage premiums will fall 16.5% in 2027.
The enrollment-weighted average premium is expected to drop from $14.37 in 2026 to $12 in 2027.
Maximum Part D deductible will rise from $615 in 2026 to $700 in 2027.
Annual out-of-pocket cap for covered Part D drugs will increase from $2,100 to $2,400 in 2027.
Medicare Open Enrollment runs Oct 15-Dec 7, 2026, with changes effective Jan 1, 2027.

History

Historical Context

The 2003 Medicare Prescription Drug, Improvement, and Modernization Act introduced Medicare Part D, expanding private-plan coverage and setting premium benchmarks for seniors. CMS reported that by 2006, UnitedHealth Group managed over 2 million Part D enrollees, while average premiums reached $28 per month for beneficiaries. Today, CMS projects Medicare Advantage premiums to fall 16.5% to $12 in 2027, echoing the Act’s goal of cost containment through private plans. Congress may adjust Part D deductible caps, as the Affordable Care Act’s 2025 reforms aim to protect seniors while enrollment could surpass 30 million by 2030.

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Story summary

The U.S. Centers for Medicare & Medicaid Services projects Medicare Advantage premiums will fall 16.5% in 2027.
The enrollment-weighted average premium is expected to drop from $14.37 in 2026 to $12 in 2027.
Maximum Part D deductible will rise from $615 in 2026 to $700 in 2027.
Annual out-of-pocket cap for covered Part D drugs will increase from $2,100 to $2,400 in 2027.
Medicare Open Enrollment runs Oct 15-Dec 7, 2026, with changes effective Jan 1, 2027.

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