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Medicare Part D
Prescription Drug Coverage 2027
Medicare Part D Premium 2027
Reviewed by Russell Noga, Licensed Medicare Insurance Broker (all 50 states) — Last updated September 28, 2026
The Medicare Part D premium for 2027 starts from a national base beneficiary premium of $41.33, up from $38.99 in 2026. That number is the starting point, not your bill. What you actually pay depends on the plan you pick, where you live and your income, and for 2027 there is a new wrinkle: the temporary federal subsidy that held standalone drug plan premiums down for the last two years ends on December 31, 2026. Here is what the Medicare Part D plans 2027 premium picture looks like, what it may cost you per month, and how to keep it as low as possible before enrollment closes on December 7, 2026.
Key Takeaways
- The 2027 Part D base beneficiary premium is $41.33, up 6% from $38.99 in 2026. It is the figure Medicare uses to calculate premiums and penalties, not the price of any single plan.
- The Part D Premium Stabilization Demonstration ends December 31, 2026. The $10 monthly premium subsidy and the $50 cap on premium increases both disappear for 2027.
- CMS projects most standalone plan enrollees will see premium increases of less than $10 per month. Individual plans can move further.
- In 2026 the average standalone Part D premium was projected at $34.50, while the average drug premium inside a Medicare Advantage plan was projected at $11.50.
- Higher earners pay an IRMAA surcharge on top of the plan premium, and anyone who enrolls late pays a lifetime penalty based on the $41.33 base premium.
What Is the Medicare Part D Premium for 2027?
There is no single Part D premium. Every plan sets its own. What Medicare publishes each year is the national base beneficiary premium, which for 2027 is $41.33. CMS uses it to calculate the late enrollment penalty and the income-related surcharge, and it anchors the government’s share of plan costs. The law caps its growth at 6% a year through 2029, which is exactly the increase for 2027.
Your plan’s premium can be well above or below $41.33. Some standalone plans have historically charged $0 in some states, and others run past $100 a month. The only way to know your 2027 premium is to look up the specific plans offered in your county once carriers publish their 2027 details in October.
| Part D cost | 2026 | 2027 |
|---|---|---|
| Base beneficiary premium | $38.99 | $41.33 |
| Premium stabilization subsidy | $10 per month | Ended |
| Cap on a plan’s premium increase | $50 per year | Ended |
| Standard deductible (maximum) | $615 | $700 |
| Annual out-of-pocket cap | $2,100 | $2,400 |
| National average monthly bid amount | $239.27 | $296.05 |
Why Medicare Part D Premiums Are Going Up in 2027
For 2025 and 2026, nearly every standalone Prescription Drug Plan took part in the Part D Premium Stabilization Demonstration. It did two things: it knocked a flat amount off every plan’s premium, $10 per member per month in 2026, and it stopped any participating plan from raising its premium by more than $50 year over year. That is a big part of why the average standalone premium fell from about $38.31 in 2025 to a projected $34.50 in 2026 even as drug costs climbed.
On July 28, 2026, CMS announced the demonstration ends after 2026, a year earlier than planned. At the same time, the national average bid, which reflects what insurers expect it to cost to run the basic benefit, jumped about 24% to $296.05. Put those together and 2027 premiums are being priced without a safety net, on top of higher underlying costs.
What CMS expects
CMS projects that most standalone plan enrollees will see premium increases of less than $10 per month. That is an average. With the $50 increase ceiling gone, a plan that leaned hard on the subsidy can reprice by much more, and your plan renews you at its new price automatically unless you switch by December 7.
For a fuller look at everything else moving in 2027, see our Medicare Part D plans 2027 guide.
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How Much Is Medicare Part D Per Month in 2027?
Final plan-by-plan premiums come out in October, but you can estimate. The average standalone Part D premium was projected at $34.50 a month in 2026. If CMS’s projection of an increase under $10 holds for your plan, you would land somewhere around $35 to $45 a month. Plans that were already priced low, or that did not rely on the subsidy, may barely move. Plans that did may move more.
The monthly premium is only one of four costs. Your real annual cost is:
- Premium times twelve. A $40 plan costs $480 a year before you fill a single prescription.
- The deductible. Up to $700 in 2027. Many plans charge less or waive it on generic tiers. See how Part D deductibles work.
- Copays and coinsurance. Set by the tier each of your drugs sits on.
- The cap. Your deductible and drug cost sharing stop at $2,400 for the year. Premiums do not count toward it. See Part D out-of-pocket limits.
The cheapest premium is often not the cheapest plan. A $0 premium plan that puts one of your brand-name drugs on a high coinsurance tier can easily cost more across the year than a $45 plan that covers it on a preferred tier.
Standalone Part D vs Medicare Advantage Premiums
How you get drug coverage changes the premium dramatically. In 2026, the average standalone Part D premium was projected at $34.50 a month. The average drug coverage premium inside a Medicare Advantage plan was projected at $11.50, because Medicare Advantage plans can use their rebate dollars to buy down the drug premium. Many Medicare Advantage plans with drug coverage carry a $0 plan premium, depending on the plan and your area.
That gap matters more in 2027, because the subsidy ending only applies to standalone plans. If you are on Original Medicare with a standalone drug plan and do not have a Medicare Supplement policy, it is worth pricing a Medicare Advantage plan with drug coverage side by side. Medicare Advantage plans use provider networks and not all plans offer all benefits, so compare your doctors and your drug list, not just the premium. You can compare Medicare Part D and Medicare Advantage plans in your area in a few minutes.
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Medicare Part D IRMAA: The Income Surcharge
If your income is above a set threshold, you pay an Income-Related Monthly Adjustment Amount, or IRMAA, on top of your plan premium. It applies whether your drug coverage is a standalone plan or part of a Medicare Advantage plan, and it is paid to Medicare, not to your plan. Your 2027 surcharge is based on the income on your 2025 tax return.
The 2027 IRMAA brackets and amounts are announced in the fall. Because the surcharges are calculated from the base beneficiary premium, and that premium is rising for 2027, expect the dollar amounts to rise too. For reference, here are the 2026 amounts:
| Individual income | Joint income | 2026 Part D surcharge |
|---|---|---|
| $109,000 or less | $218,000 or less | $0 |
| Above $109,000 up to $137,000 | Above $218,000 up to $274,000 | $14.50 |
| Above $137,000 up to $171,000 | Above $274,000 up to $342,000 | $37.50 |
| Above $171,000 up to $205,000 | Above $342,000 up to $410,000 | $60.40 |
| Above $205,000, under $500,000 | Above $410,000, under $750,000 | $83.30 |
| $500,000 or more | $750,000 or more | $91.00 |
If your income dropped because of a life-changing event such as retirement, you can ask Social Security to use more recent income with Form SSA-44.
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The Part D Late Enrollment Penalty in 2027
If you go 63 days or more without Part D or other creditable drug coverage after you first become eligible, you pay a penalty added to your premium for as long as you have Part D. It equals 1% of the national base beneficiary premium for every full month you went without coverage. With the 2027 base premium at $41.33, that is about 41 cents for each month of delay, with the total rounded to the nearest ten cents. Two years without coverage adds roughly $9.90 a month, every month, for life, and the amount is recalculated each year as the base premium rises.
Learn how to avoid the Part D late enrollment penalty, or estimate yours with our Medicare Part D penalty calculator.
Help Paying Your Part D Premium in 2027
Extra Help, also called the Low-Income Subsidy, is unaffected by the premium stabilization demonstration ending. If you qualify, it can reduce your premium to $0 on plans priced at or below your region’s benchmark, eliminate your deductible, and cut copays to a few dollars. Your home, car and personal belongings do not count toward the resource limit, so apply through Social Security rather than assuming you do not qualify. Extra Help also waives the late enrollment penalty.
How to Lower Your Medicare Part D Premium for 2027
Step 1. Read your Annual Notice of Change. It shows your plan’s 2027 premium next to this year’s. If it jumped, that is your signal to shop.
Step 2. Price every plan in your county. Premiums for the same carrier can differ sharply from plan to plan and state to state.
Step 3. Compare total annual cost, not premium. Premium times twelve, plus deductible, plus your expected copays.
Step 4. Price a Medicare Advantage plan with drug coverage. If you do not hold a Medicare Supplement policy, the premium difference can be large.
Step 5. Enroll before December 7, 2026. Coverage starts January 1, 2027. Doing nothing renews you at your plan’s new price.
Start with our Medicare Part D plan comparison, narrow it down with our guide to comparing Part D plans by state, or shortlist the best rated Medicare Part D plans. To see how this year’s premiums compare with last year’s, review Medicare Part D premiums for 2026.
Frequently Asked Questions About the Medicare Part D Premium in 2027
➤ What is the Medicare Part D premium for 2027?
The 2027 national base beneficiary premium is $41.33, up from $38.99 in 2026. It is the figure Medicare uses in its calculations, not the price of a specific plan. Each Part D plan sets its own premium, which can be higher or lower depending on the plan and where you live.
➤ How much will Medicare Part D cost per month in 2027?
It depends on the plan. The average standalone Part D premium was projected at $34.50 a month in 2026, and CMS expects most standalone enrollees to see increases of less than $10 a month for 2027. Final plan premiums are published in October, before enrollment opens on October 15.
➤ Why are Medicare Part D premiums increasing in 2027?
The Part D Premium Stabilization Demonstration ends December 31, 2026. It gave standalone plans a $10 monthly premium subsidy in 2026 and capped any plan’s premium increase at $50 a year. Both protections are gone for 2027, and the national average plan bid rose about 24% to $296.05.
➤ Are there $0 premium Medicare Part D plans in 2027?
Some areas have had $0 premium standalone drug plans, and many Medicare Advantage plans with drug coverage carry a $0 plan premium, depending on the plan and your area. With the premium subsidy ending, fewer standalone plans may be able to hold a $0 premium in 2027. Check the plans in your county once 2027 details are published.
➤ What are the 2027 Part D IRMAA amounts?
The 2027 IRMAA brackets and surcharges are announced in the fall and are based on your 2025 income. In 2026 the Part D surcharge ranged from $14.50 to $91.00 a month for individuals with income above $109,000 or couples above $218,000. Because the surcharge is calculated from the base premium, 2027 amounts are expected to rise.
➤ How is the Part D late enrollment penalty calculated in 2027?
The penalty is 1% of the national base beneficiary premium for each full month you went without Part D or other creditable drug coverage. At the 2027 base premium of $41.33, that is about 41 cents for each month of delay, with the total rounded to the nearest ten cents and added to your premium for as long as you have Part D.
➤ Does my Part D premium count toward the $2,400 out-of-pocket cap?
No. The 2027 out-of-pocket cap of $2,400 counts your deductible, copays and coinsurance on covered drugs. Monthly premiums do not count toward it, so they continue even after you reach the cap.
➤ Is a Medicare Advantage plan cheaper than a standalone Part D plan?
On premium, often yes. In 2026 the average drug coverage premium inside a Medicare Advantage plan was projected at $11.50 a month, compared with $34.50 for a standalone Part D plan. Medicare Advantage plans use provider networks and benefits vary by plan and area, so compare your doctors and your total annual drug cost as well.
➤ What happens to my premium if I do nothing before December 7?
Your current plan renews you automatically into its 2027 version at the 2027 premium. You will not be asked to approve the new price. With both premium protections ending this year, compare plans during the October 15 to December 7, 2026 enrollment period before letting your plan renew.
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