Medicare Premiums and Drug Costs to Rise for Most Beneficiaries in 2027
In 2027, Medicare premiums and drug costs are expected to increase for most beneficiaries. Part B premiums will rise by $6.60 per month on average, with a projected monthly cost of $209.50. The Part B deductible is also set to increase from $283 in 2026 to $292 in 2027. Additionally, the government plans to end a subsidy that reduced stand-alone Medicare Part D premiums by an average of $16 per month this year, leading to higher drug plan costs for many beneficiaries. The base premium for Part D is expected to rise from its current level to $41.33 in 2027, and the out-of-pocket spending cap will increase from $2,100 to $2,400 annually. Beneficiaries receiving Social Security benefits may see a modest cost-of-living adjustment of about 3.6%, or approximately $70 per month, which could help offset some increased costs. Beneficiaries are advised to review their Annual Notice of Change by mail and consider adjusting plans during the open enrollment period from October 15 to December 7.
Topics: 2027 changes cost-of-living adjustment Medicare premiums Social Security