Medicare Part D premiums could jump 50% in 2027 without plan switching, report finds

If you receive your prescription drug coverage through a stand-alone Medicare Part D plan, you may face a noticeable hit to your monthly budget next year if you stay on autopilot.

According to new research from health policy research group [KFF], the average monthly premium for stand-alone Medicare Part D drug plans is projected to increase by 50% in 2027—rising from $34 to $51 per month—unless enrollees actively compare options and transition to lower-cost plans during open enrollment.

The findings arrive at a pivotal moment. Millions of older adults rely on stand-alone Part D plans to pair with traditional Medicare, and open enrollment is often the only window all year to safeguard against steep cost changes.

Why premiums are climbing

The projected increase reflects ongoing realignments across the private prescription drug market [KFF]. While federal reforms have capped catastrophic out-of-pocket prescription expenses for seniors, insurers offering stand-alone drug plans have steadily adjusted their pricing structures, deductibles, and formulary tiers to manage their liabilities.

For beneficiaries enrolled in these plans, the consequence is stark: staying in your current arrangement without checking the fine print could mean paying significantly higher premiums for the exact same medications you take today. The projected 50% increase is an average, meaning some enrollees could experience even sharper spikes depending on their specific carrier and geographic region [KFF].

Compounding the disruption, recent analysis shows that more than 4 million Medicare beneficiaries will see their current Medicare Advantage or stand-alone drug plan terminated entirely heading into 2027 [KFF]. For those individuals, inaction is not an option—they will either be reassigned or left without equivalent coverage if they do not select a replacement.

The cost of inertia

Historically, most Medicare beneficiaries do not switch plans during open enrollment. Studies have long documented that navigating formularies, pharmacy networks, and copay tiers feels exhausting, leading many people to simply allow their policies to automatically renew year after year.

In 2027, however, that inertia carries an unusually steep price tag. [KFF] notes that the projected spike to $51 per month represents what enrollees will pay if they remain in their existing plans. By actively comparing alternatives on the federal Medicare Plan Finder tool, many beneficiaries can identify lower-cost options that still cover their specific medicine cabinet at in-network pharmacies.

Even a modest difference in monthly premiums adds up quickly for those living on fixed incomes, especially when paired with grocery, utility, and housing inflation.

What you should do right now

If you take prescription medications and carry traditional Medicare with a Part D rider, treat this open enrollment window as essential financial maintenance. A few practical steps can protect your wallet before coverage resets on January 1:

• Gather your current medications. Make a complete list of your prescriptions, including exact dosages and how often you refill them.
• Log in to Medicare.gov. Using the official Medicare Plan Finder allows you to build an accurate drug list and compare the total annual cost—combining premiums, deductibles, and copayments—across every available plan in your zip code.
• Check pharmacy networks. A plan with a lower premium may designate your preferred neighborhood pharmacy as out-of-network, which can erase any savings. Look specifically for plans listing your pharmacy as "preferred."
• Watch for discontinuation notices. If your plan is among those being terminated at year-end, read all correspondence from your insurer carefully to ensure you do not experience a gap in coverage.

Reviewing health plans can feel daunting, but you do not have to do it alone. Every state offers free, unbiased counseling through the State Health Insurance Assistance Program (SHIP), where trained advisers can help you walk through your options without sales pressure.