How Much Are Part D Premiums Rising in 2027?
KFF projects the average monthly premium for stand-alone Medicare Part D prescription drug plans (PDPs) will rise 50%, from $34 in 2026 to $51 in 2027, if enrollees stay in their current plans. That’s the finding of a KFF analysis released October 30. KFF also expects the real average to end up lower, because many people will switch to cheaper plans during the Annual Enrollment Period (AEP), which runs through December 7.
The KFF issue brief shows how widely the increases are spread among the 13.6 million PDP enrollees who don’t get the Low-Income Subsidy (LIS):
- 76% (10.4 million) will pay a higher premium if they keep their plan.
- 2.4 million face an increase of more than $50 a month. For 2026, only 38,000 people faced an increase that size.
- 4.1 million who paid a $0 premium in 2026 will pay something in 2027. No $0-premium PDPs are available to non-LIS enrollees.
- Nearly 30% (3.9 million) will pay $100 or more a month, up from 20% in 2026.
- 55% (7.5 million) will still pay less than $20 a month.
Drug coverage through Medicare Advantage looks very different. KFF estimates the average MA-PD drug premium at about $9 a month, while CMS puts it at $7 after rebates. Our 2027 Medicare Advantage premium breakdown covers that side of the market.
Broker Takeaway
This is a stand-alone PDP problem. Your Medigap and Original Medicare clients with a PDP are the ones most exposed, and most of them need a call before December 7, not a mailer.
Why KFF and CMS Report Such Different Numbers
Your clients may see headlines that seem to contradict each other. CMS projects the average stand-alone PDP premium rising less than $1, from $35.09 to $36. It also says 88% of non-LIS beneficiaries can get a basic plan for $10.30 or less, and 93% can get an enhanced plan for under $6.
Both figures can be right, because they measure different things. KFF assumes everyone stays in the plan they have. CMS’s figure, according to KFF, rests on September enrollment, and CMS did not explain its method. The gap between the two is roughly what clients stand to save by shopping. Two structural changes explain why staying put costs so much this year, according to KFF:
- The Part D Premium Stabilization Demonstration ended after 2026. It had given plan sponsors extra subsidies and capped year-over-year premium increases at $50 a month for participating plans. Without the cap, some plans rose much more.
- Plan choice keeps shrinking. The number of PDPs fell for the fourth straight year. The average beneficiary has 9 stand-alone PDPs to choose from, compared with 28 MA-PDs.
The national base beneficiary premium also rose to $41.33 for 2027, which matters for the late enrollment penalty discussed below.
Broker Takeaway
When a client says “Medicare said premiums are stable,” agree, and explain the condition: they’re stable only for people who move to a lower-cost plan. That conversation is your opening.
The National Plans: Biggest Increases and Lowest Premiums
Eight national PDPs are offered in all 34 PDP regions in 2027. Their average premiums range from about $6 to $204, according to KFF:
KFF’s October brief also flagged plans that were $0 in 2026 and will now charge a premium. Humana Basic Rx rises $6.30 to $30.60 a month in 28 states. HealthSpring Assurance Rx rises $9.30 to $14.70 in 11 states, and Humana Value Rx rises $17.20 to $22.30 in 5 states. For six of the eight national plans, premiums differ by at least $90 a month between the cheapest and most expensive regions, so always quote by ZIP code.
Low premium doesn’t automatically mean low cost. For 2027, Centene added an injectable-drug tier with 15% coinsurance and combined its two generic tiers into one, with a $20 copay in its two Wellcare PDPs, according to KFF. Half of all PDP enrollees are in Wellcare plans. Run every client’s drug list through Medicare Plan Finder before recommending a change.
Deductibles, Coinsurance and the $2,400 Cap
Premiums are only part of the bill. Medicare.gov confirms that no plan can charge a deductible above $700 in 2027 (up from $615), and the yearly out-of-pocket cap on covered Part D drugs rises from $2,100 to $2,400. These figures come from the CMS 2027 Rate Announcement.
More MA-PD enrollees face coinsurance on preferred brands: 83% in 2027, up from 54% in 2026, according to KFF. Coinsurance changes with a drug’s list price, so it’s harder to predict than a flat copay. For a client on two or three brand-name drugs, that means reaching the $2,400 cap sooner and paying more of it in the first months of the year.
Five Client Scenarios
1. The loyal AARP Rx Preferred client
Linda has Medigap Plan G and has kept AARP Medicare Rx Preferred for years. At KFF’s national averages, her premium goes from $126 to $204.50 a month. That’s $2,454 a year, up from $1,512, before she fills a single prescription. If her drugs are on a lower-premium plan’s formulary at similar tiers, switching could save her hundreds or even thousands of dollars. If she takes a specialty drug, the total-cost comparison in Plan Finder decides it, not the premium.
2. The “$0 plan” client who never reads mail
Frank paid nothing for Humana Basic Rx in 2026. In 2027, depending on his state, he could pay $6.30 to $30.60 a month, up to $367 a year, plus a higher deductible. Small as that sounds, Frank will notice a new premium deduction from his Social Security check in January and wonder why his agent didn’t call.
3. The client who switched in time
The Virginia retiree in KFF Health News’s reporting went from $39.60 to $121.90 a month, an extra $82.30, by staying in his AARP-UnitedHealthcare plan. Switching to a Humana plan at $19.30 brought his premium below what he paid in 2026. Over 12 months, that’s $1,231 less than staying put. That one comparison is the strongest case you can make to clients for a review.
4. The client who asks about Medicare Advantage
Maria sees MA-PD drug premiums of $7 to $9 and asks whether she should drop her Medigap. Explain the trade-offs: network restrictions, prior authorization, and the risk that she can’t get her Medigap back later. In most states, outside a guaranteed issue right, she would face medical underwriting to return. Walk her through our Medicare Advantage vs. Medicare Supplement guide before she decides, and document a Scope of Appointment that covers both products, per our Scope of Appointment rules guide.
5. The client who wants to drop drug coverage
George takes one generic and figures he’ll skip Part D to save money. If he goes 63 days or more without creditable drug coverage, he faces a permanent late enrollment penalty of 1% of the national base beneficiary premium for each month without coverage, as Medicare.gov explains. Using the 2027 base of $41.33, a 24-month gap works out to about $9.90 a month, added for as long as he has Part D. A low-premium plan is almost always the better choice.
Extra Help, the Payment Plan and the Penalty Trap
- Extra Help (LIS). Clients who qualify get help with premiums, deductibles and copays, and anyone enrolled in a Medicare Savings Program qualifies automatically, according to CMS. Screen every client whose premium increase is a real hardship. See Medicare.gov and KFF for options.
- Medicare Prescription Payment Plan. This option spreads out-of-pocket drug costs over the calendar year in monthly payments. It doesn’t lower the total, which is still capped at $2,400 in 2027, according to Medicare.gov. It’s valuable for clients who would otherwise hit the cap in January or February.
- The penalty trap. Warn any client thinking about dropping coverage, and anyone losing employer coverage, about the 63-day rule and creditable coverage.
When the Best Plan Pays You Nothing
This AEP comes with an uncomfortable twist. Becker’s Payer Issues reported that Aetna made 123 Medicare Advantage plans in 33 states non-commissionable for new 2027 enrollments, and industry summaries say the change also applies to some stand-alone PDPs. Brokers have reported similar moves by other carriers, and UnitedHealthcare, Elevance, Cigna and others have done this in past cycles. Plan benefits, networks and Plan Finder listings don’t change. Only agent compensation for new enrollments does.
That creates a real conflict when the lowest-cost plan for a client pays you nothing. Medicare marketing rules expect recommendations to be based on the beneficiary’s needs, not on what the agent earns. Federal scrutiny of agent compensation is also high: MedPAC raised incentive concerns in its June 2026 report, and the Justice Department’s kickback lawsuit against several MA carriers is moving forward. Protect yourself and your clients:
- Check the CMS agent and broker compensation page, including the CY2027 compensation data file, and your carrier and upline bulletins before quoting.
- Show every suitable plan, including non-commissionable ones, and record why the client chose what they chose.
- If the best fit is a plan you can’t be paid on, enroll the client anyway or refer them to 1-800-MEDICARE or Plan Finder, and note it in your file.
- Keep in mind that renewal compensation is generally 50% of the initial payment, and the trust you earn this year protects your book far longer. See our renewal commission guide.
Broker Takeaway
The agent who saves a client $1,000 on a plan that pays $0 usually keeps that client, their spouse and their referrals for a decade. Document everything and play the long game.
Your Part D Review Plan Before December 7
- This week: segment your book. Pull every client with a stand-alone PDP and flag anyone in AARP Rx Preferred or Rx Saver, anyone in a 2026 $0 plan, and anyone on brand-name or specialty drugs.
- Call the biggest increases first. Start with clients facing increases above $50 a month.
- Refresh drug lists. Confirm current medications, doses and preferred pharmacies before running Plan Finder.
- Compare total yearly cost, not just premium: premium plus deductible plus expected drug costs.
- Screen for Extra Help and Medicare Savings Programs whenever cost is a hardship.
- Offer the Prescription Payment Plan to clients likely to reach the $2,400 cap early.
- Complete the Scope of Appointment before discussing any new product type.
- Check commission status for every plan you might recommend, and document every suitability decision.
- Book appointments, don’t just send mail. Respect the calling hours in states such as Pennsylvania.
- Finish by December 5 so applications have time to process before AEP closes on December 7.
Clients losing their Medicare Advantage plan or facing benefit cuts need the same review. See our plan non-renewal playbook and 2027 benefit cuts guide. For Medigap clients rethinking premiums across the board, our high-deductible Plan G guide is a useful companion.
How Affordable Care Agents Supports Medicare Brokers
Affordable Care Agents is a national FMO, IMO and insurance brokerage. If you’re new to the model, here’s what an FMO does for brokers. During AEP, our brokers get:
- Carrier contracting across Medicare Advantage, Part D, Medicare Supplement, ancillary and life products
- Up-to-date carrier bulletins on premiums, formularies and commission status
- Compliance guidance on suitability, Scope of Appointment, call recording and documentation
- Back-office and enrollment support through December 7
- AHIP 2027 certification at a discount through our OIM partnership. See our AHIP 2027 certification guide
Turn the Part D Premium Shock Into Your Best AEP
Partner with Affordable Care Agents for the carrier access, real-time updates and compliance support you need to review every drug plan client before December 7.
Still need AHIP 2027? Complete it at a discount through our OIM partnership.
Frequently Asked Questions
Disclaimer: This article is provided for educational and informational purposes only and should not be considered legal, tax, financial, medical, insurance, or compliance advice. Insurance laws, Medicare and Medicaid regulations, Affordable Care Act (ACA) Marketplace rules, carrier policies, commissions, plan availability, eligibility requirements, and state regulations may change without notice and vary by jurisdiction. Readers should verify all information through official sources such as CMS, Medicare.gov, Healthcare.gov, the IRS, applicable state Departments of Insurance, and insurance carriers before making insurance or business decisions. Affordable Care Agents is a national Field Marketing Organization (FMO), Insurance Marketing Organization (IMO), and insurance brokerage. Publication does not constitute an offer of insurance or a guarantee of coverage, contracting, compensation, eligibility, or regulatory compliance.
