Medicare Advantage premiums are projected to decline by more than 16 percent on average in 2027 compared to 2026, with Medicare Advantage prescription drug premiums set to drop by 38 percent, according to a Sept. 28 statement from the Centers for Medicare and Medicaid Services (CMS).

The average monthly premium across all Medicare Advantage plans is expected to fall to $12 in 2027, down from more than $14 in 2026. Those include plans with prescription drug coverage and Special Needs Plans. Supplemental benefit offerings, including hearing, dental, and vision benefits, are expected to remain stable.

Medicare is a federal health insurance program for people age 65 or older and disabled Americans. It provides Part A (hospital), Part B (medical), Part C (Medicare Advantage), and Part D (drug) coverage.

While traditional Medicare is a fee-for-service model in which Medicare pays providers directly for services, Medicare Advantage plans must cover all necessary services that traditional Medicare covers and may also offer extra benefits, such as vision, hearing, and dental services.

In 2026, 35.2 million—more than half (55 percent) of Medicare beneficiaries–are enrolled in Medicare Advantage plans, according to KFF, a healthcare policy research center.

Medicare Advantage Options by State

Although the federal department estimated that available plans nationwide are nearly unchanged, Medicare Advantage options will decrease in 28 states and the District of Columbia in 2027, according to CMS.

Plans in Wyoming are leading the decline, dropping by 43 percent from 14 in 2026 to 8 in 2027.

More than a quarter of Medicare Advantage plans exited Montana (28 percent), Washington, D.C. (25 percent), and Maryland (25 percent).

Moreover, Medicare Advantage premiums will increase in 19 states.

Wyoming is also facing the largest jump, from nearly $46 a month in 2026 to over $69 a month in 2027. Idaho’s premium will go up by $10 to roughly $38 per month. Connecticut’s will climb by $8 to $25. 

Vermont’s premium will rise from $0 in 2026 to $7.8 in 2027.

The upcoming Medicare Open Enrollment begins Oct. 15 and ends Dec. 7. During this time, people with Medicare can compare coverage options at Medicare.gov.

“We urge beneficiaries to use Open Enrollment as an opportunity to review their coverage, compare options, and pick the plan that best suits their needs and budget,” CMS Administrator Dr. Mehmet Oz said, because plan costs and benefits can change from year to year.

In 2026, about 10 percent of Medicare Advantage enrollees—roughly 2.9 million—had to find new coverage after their plans were discontinued and insurers left the market, according to a February study from the Journal of the American Medical Association.

Medicare Part D

Despite the sunset of temporary subsidies for Medicare Part D—the stand-alone prescription drug plan—the average premium for Part D will move up by less than $1 per month to $36 in 2027, from over $35 in 2026, according to CMS.

Medicare had been paying subsidies to insurers to keep Part D premiums lower since 2024. The Centers for Medicare and Medicaid Services said insurers have gained “sufficient experience” in stabilizing the market so the subsidies are no longer needed.

Medicare beneficiaries will continue to have access to affordable coverage and broad plan choice in 2027 without relying on billions of dollars in temporary subsidies to insurance companies, the federal department said in the statement.

“By slashing handouts to big insurance companies, [Centers for Medicare and Medicaid Services] is keeping premiums stable,” Oz said.

Roughly 93 percent of non-low-income beneficiaries can get an enhanced Part D for less than $6 per month, according to the federal agency’s estimates.

For Medicare Advantage plans that include prescription drug coverage, after rebates, the average monthly Part D total premium is projected to decrease to $7 in 2027, down 38 percent from over $11 in 2026.