Medicare Advantage Cost in 2027: Premiums Drop to $12/Month

The Headline: Medicare Advantage Premiums Drop to $12/Month in 2027

If you're asking how much will Medicare Advantage cost in 2027, the Centers for Medicare & Medicaid Services (CMS) just gave an answer most people didn't expect: the weighted average monthly premium across all Medicare Advantage plans is projected to fall from $14.37 in 2026 to $12.00 in 2027 — a decline of 16.5%. That's the lowest average MA premium in years, and it arrives just in time for open enrollment.

But don't stop at the headline number. Premiums are only one part of what a plan costs you over a year. In this guide, we break down the official 2027 numbers, what's actually changing, what's staying the same, and 5 steps to take before open enrollment ends on December 7.

What Did CMS Announce for 2027?

In its September 2026 release, CMS projected the following for the 2027 plan year:

• Medicare Advantage average premium: $12.00/month in 2027, down from $14.37 in 2026 (−16.5%). This is a weighted average across all MA plans, including plans with prescription drug coverage and Special Needs Plans — your individual plan's premium may differ.
• Standalone Part D premium: projected to rise less than $1, from $35.09 in 2026 to about $36/month in 2027.
• MA prescription drug premium (after rebates): projected to drop 38%, from $11.32 to about $7/month.
• Plan availability: roughly 5,532 MA plans nationally in 2027 (vs. 5,553 in 2026); more than 99% of beneficiaries will have access to at least one MA plan, and 97% will have 10 or more options.
• Enrollment: estimated at 34 million, or about 47.4% of all Medicare beneficiaries — CMS notes actual enrollment usually comes in higher than plan projections.
• Supplemental benefits: hearing, dental, and vision benefit offerings are expected to remain stable.
• About 8 in 10 MA enrollees will be able to stay in their current plan with the same or a lower premium in 2027, according to CMS.

Source: CMS press release, "Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027," September 2026.

When Is Medicare Open Enrollment for 2027 Coverage?

Medicare open enrollment runs from October 15 through December 7, 2026, and any changes you make take effect on January 1, 2027. During this window you can switch from Original Medicare to a Medicare Advantage plan, change from one MA plan to another, or join, switch, or drop a Part D prescription drug plan.

Nearly 70% of Medicare beneficiaries did not compare coverage options during a recent open-enrollment period, according to KFF. That means most people leave potential savings on the table simply by doing nothing.

Insurers were required to notify enrollees by September 30 about changes to monthly premiums, drug coverage, and provider networks for 2027. If you received an Annual Notice of Change letter, read it before October 15 — it spells out exactly how your plan's costs and coverage shift next year.

Why Is the Average Premium Falling?

The decline isn't because healthcare got cheaper. Analysts point to a few forces: insurers have been trimming their plan footprints in less-profitable markets (Humana reduced its footprint more than peers; UnitedHealth and CVS Health also cut plan offerings, according to Reuters reporting on the CMS release), plans are focused on recovering margins rather than growing enrollment, and MA rebates are being used to buy down premiums — particularly the drug portion, which is why the MA prescription drug premium is projected to fall 38%.

Translation for your wallet: the average looks great, but individual plans move in both directions. Your plan could drop its premium while raising copays — or exit your county entirely.

The Catch: What Could Still Cost You More in 2027

A lower premium doesn't automatically mean a cheaper year. Here's what to check in your plan's 2027 documents:

1. Copays and coinsurance. Premiums get the headlines, but copays for doctor visits, specialist care, and hospital stays can rise even when premiums fall. As KFF's Juliette Cubanski put it: "The bottom line is that it will pay to shop around during the 2027 Medicare open-enrollment period, and look past the premium to assess other benefit changes."
2. Provider networks. Insurers are exiting some markets. Verify that your doctors, specialists, and hospital are still in-network for 2027 — out-of-network care is typically far more expensive under MA plans.
3. Drug formularies and tiers. Check whether your medications moved to a higher cost tier. Under CMS's 2027 Part D parameters, the annual drug deductible rises to $700 and the yearly out-of-pocket cap on covered drugs rises to $2,400.
4. Part B premium. Every Medicare Advantage beneficiary still pays the Part B premium, which is projected at about $209.50/month for 2027 (up from 2026), according to Medicare Board of Trustees projections. That's roughly $6.60 more per month before any plan premium.
5. Prior authorization rules. MA plans can require prior authorization for services that Original Medicare covers more freely. Check your plan's 2027 evidence of coverage for changes.

5 Steps to Take Before December 7

1. Read your Annual Notice of Change. This is the single highest-value document in your mailbox this fall. It lists your 2027 premium, deductible, copays, drug tiers, and network changes side by side with 2026.
2. List your actual drugs and doctors. Don't shop from memory. Write down every prescription with its dosage and every doctor you see, then check them against each plan's 2027 formulary and provider directory — not last year's.
3. Compare total yearly cost, not just the premium. Add up: 12 × (Part B premium + plan premium) + expected copays + drug costs. A $0-premium plan with high copays can cost a frequent specialist visitor more than a $40-premium plan with low copays.
4. Use Medicare.gov's plan finder. Enter your drugs and pharmacy to get a personalized total-cost estimate for every plan available in your ZIP code. It's free and it's the official source.
5. Don't wait until December 7. Popular plans can fill county-level enrollment caps, and last-minute switches leave no room to fix errors. Aim to decide by mid-November.

Should You Switch From Original Medicare to Medicare Advantage in 2027?

There's no universal answer — the right choice depends on your health, doctors, and budget:

• Medicare Advantage may suit you if: you want dental, vision, and hearing benefits bundled in, you like a yearly cap on out-of-pocket costs, and your doctors are in the plan's network.
• Original Medicare + Medigap may suit you if: you want to see any doctor who accepts Medicare nationwide without referrals, you travel frequently, or you expect significant specialist or hospital care and want predictable bills.
• Watch out if your plan was discontinued. With insurers exiting some markets, some beneficiaries must pick a new plan for 2027 — Medicare grants a guaranteed special enrollment period in that case, so you won't lose coverage, but you do need to act.

If you already compared insurance costs earlier this year — for example, our breakdown of how much car insurance costs across the USA in 2026 — you already know the DollarWise rule: the sticker price is never the whole price. It applies to Medicare plans exactly the same way.

Frequently Asked Questions

How much will Medicare Advantage cost in 2027 on average?
CMS projects a weighted average monthly premium of $12.00 in 2027, down from $14.37 in 2026 (a 16.5% decline). Individual plan premiums vary by county and insurer — many plans charge $0 beyond the Part B premium, while others charge more.

When is Medicare open enrollment for 2027?
October 15 through December 7, 2026. Changes take effect January 1, 2027.

Are Part D prescription drug plan premiums going up in 2027?
Slightly. CMS projects the average standalone Part D premium will rise less than $1, from $35.09 to about $36/month. The drug portion inside Medicare Advantage plans, however, is projected to fall 38% (from $11.32 to about $7/month after rebates).

Will my Medicare Advantage plan still be offered in 2027?
Most will — about 8 in 10 MA enrollees can keep their plan at the same or a lower premium, per CMS. But some insurers exited less-profitable markets, so check your Annual Notice of Change letter (sent by September 30) to confirm your plan continues in your county.

Where can I compare 2027 Medicare plans?
Medicare.gov's official plan finder lets you enter your prescriptions and pharmacy to compare total yearly costs across every plan in your ZIP code. It's free and run by CMS.

The Bottom Line

A projected $12/month average premium makes 2027 look like a good year for Medicare Advantage on paper — but your personal cost depends on copays, drug tiers, networks, and the Part B premium you pay either way. Do the 30-minute homework: read your Annual Notice of Change, price your actual drugs and doctors, and compare total yearly cost on Medicare.gov before December 7.

Disclaimer: This article is for educational purposes only and is not financial, insurance, or medical advice. Premium figures are CMS national projections (weighted averages) for 2027 and will differ by plan, county, and insurer. Always verify costs and coverage in your plan's official 2027 documents or at Medicare.gov before making enrollment decisions.