Medicare drug plan premiums could jump 50% in 2027 without a plan switch

If you receive your Medicare prescription drug coverage through an individual, stand-alone policy, your monthly costs may be about to climb steeply unless you take action before open enrollment closes.

The average monthly premium for stand-alone Medicare Part D prescription drug plans is projected to surge by 50% in 2027, climbing from $34 to $51 per month [KFF]. That sharp increase applies to beneficiaries who stay in their current plans without comparing alternative options or moving to lower-cost alternatives available in their region.

For older adults living on fixed incomes, an extra $17 a month adds up to more than $200 over the course of the year—a noticeable dent in any household healthcare budget.

The widening gap in drug plan costs

Prescription drug coverage under Medicare generally takes two paths. You might receive it as an add-on benefit through an all-in-one Medicare Advantage plan, or you might pair a stand-alone Part D plan with Original Medicare.

Recent analysis shows that the premium landscape between these two choices is diverging rapidly. Stand-alone Part D plans are seeing significantly higher average monthly premiums than the drug coverage embedded within Medicare Advantage plans [KFF]. As insurers adjust formularies, plan designs, and pricing structures for 2027, enrollees who rely on stand-alone policies are bearing the brunt of the premium pressure.

This makes the current open enrollment period particularly consequential. While many enrollees routinely let their existing drug plan roll over from one calendar year to the next, this projection suggests that inertia could prove expensive.

Over four million enrollees face canceled plans

Compounding the financial pressure, premium hikes are not the only disruption arriving in 2027. More than 4 million Medicare beneficiaries will see their current Medicare Advantage or stand-alone prescription drug plans terminated entirely at the end of 2026 [KFF].

When insurers withdraw plans from specific counties or exit markets altogether, members cannot simply stay put. If your plan is among those being discontinued, you will need to actively select a new policy before the December deadline to prevent an interruption in your prescription drug benefits.

Even if your existing plan is staying on the market, insurers frequently adjust their formularies—the list of covered drugs—as well as their tier structures, copay amounts, and preferred pharmacy networks from year to year. A medication that cost you $15 a month this year might shift to a higher tier next year, independent of changes to the base monthly premium.

What you should do before open enrollment ends

Navigating Medicare paperwork can feel exhausting, but a small investment of time this month can prevent unpleasant surprises at the pharmacy counter in January.

• Check your mail for the Annual Notice of Change. Your current plan is required to send this document each autumn. It details your upcoming monthly premium, any changes to deductibles, and whether the medications you rely on have shifted tiers or had coverage restrictions added.
• Use the official Plan Finder tool. By entering your exact list of maintenance medications and your preferred local pharmacies on Medicare.gov, you can compare the true total annual cost—combining premiums and out-of-pocket copays—across all plans available in your zip code.
• Look beyond the premium. The lowest monthly premium is not always the most economical choice if a plan charges high copayments for the specific brand-name or generic medications you take every day.
• Seek free, unbiased guidance if you feel stuck. Every state offers a State Health Insurance Assistance Program (SHIP), where trained counselors provide one-on-one help reviewing coverage options at no charge.

Taking an hour to review your drug plan before the December 7 deadline is one of the most effective preventive steps you can take for your financial health in 2027.