Medicare Advantage premiums are heading lower in 2027, according to new figures from the Centers for Medicare & Medicaid Services.
CMS said on September 28 that the weighted average monthly premium across Medicare Advantage plans is projected to fall from $14.37 in 2026 to $12 in 2027. That works out to a 16.5% drop.
The $12 figure covers Medicare Advantage plans nationally, including plans with prescription drug coverage and Special Needs Plans. It is an average, so an individual enrollee could pay more, less or nothing at all depending on the plan available where they live.
The timing is useful for people preparing for Medicare Open Enrollment, which starts October 15 and runs through December 7.
The Average Medicare Advantage Premium Falls by $2.37 a Month
The new projection cuts the national weighted average premium by $2.37 a month compared with 2026.
| Medicare Advantage | 2026 | 2027 Projection |
|---|---|---|
| Average monthly premium | $14.37 | $12.00 |
| Annual cost at the average premium | $172.44 | $144.00 |
| Change | Down $28.44 a year, or 16.5% | |
CMS published the figures in its 2027 Medicare Advantage and Part D update.
A person paying the national average would save $28.44 over a full year. The actual saving for any enrollee depends on the plan premium in their county and any plan change they make during enrollment.
The Medicare Advantage premium also should not be confused with the Medicare Part B premium. Most people enrolled in Medicare Advantage still pay their Part B premium separately.
About 8 in 10 Enrollees Can Keep Their Plan at the Same or a Lower Premium
The national average only tells part of the story. CMS says about eight in 10 current Medicare Advantage members will be able to stay in their existing plan in 2027 and pay the same premium or a lower one.
That is more useful for current members than the $12 national figure alone. Someone whose plan stays at $0 will not see a $2.37 monthly saving simply because the national average declined. Another enrollee could see a larger change.
Plan notices sent before open enrollment will show the premium and benefit changes for each member’s current coverage.
There Will Be About 5,532 Medicare Advantage Plans in 2027
The number of Medicare Advantage plans is barely changing at the national level. CMS expects about 5,532 plans in 2027, compared with 5,553 in 2026.
That is 21 fewer plans across the country.
Local changes can still be much larger. One county can lose plans or insurers even when the national total barely moves, so current members still need to check what will actually be sold in their ZIP code.
CMS says more than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan in 2027. About 97% will have at least 10 plans available.
Those figures describe access, not quality or network size. Ten plans in a county do not guarantee that all 10 include the same doctors, hospitals or drugs.
CMS Projects 34 Million People Will Be in Medicare Advantage
Insurers project about 34 million Medicare Advantage enrollees in 2027. That would represent around 47.4% of everyone enrolled in Medicare.
CMS cautioned that insurer projections have historically come in below final enrollment. The agency expects the eventual 2027 count to be stronger than the initial projection.
Medicare Advantage remains one of the largest parts of the Medicare system even if enrollment lands close to 34 million.
Prescription Drug Premiums Inside Medicare Advantage Are Also Falling
The drug-coverage side of Medicare Advantage is showing an even larger decline.
For Medicare Advantage plans that include prescription drug coverage, the average Part D portion of the monthly premium is projected to fall from $11.32 in 2026 to $7 in 2027 after Medicare Advantage rebates are applied.
That is a reduction of $4.32 a month, or 38%.
The picture is not the same for people who buy a stand-alone Part D plan. CMS projects the average stand-alone Part D premium at $36 a month in 2027, up from $35.09 in 2026.
That latest estimate gives more context to earlier concerns about 2027 drug costs after changes to the federal premium stabilization program.
We previously covered the expected pressure on Medicare Part D premiums in 2027 before final plan pricing became available.
Dental, Vision and Hearing Benefits Are Expected to Stay Similar
CMS also said supplemental benefits such as dental, vision and hearing coverage are expected to remain stable in 2027.
That does not mean every plan will keep every benefit unchanged. Medicare Advantage insurers can revise allowances, provider networks and coverage rules from one year to the next.
A lower premium can therefore come with changes elsewhere in the plan. Someone who uses a particular dentist, specialist or expensive prescription has more to check than the monthly price.
Lower Premiums Arrive After Medicare Advantage Payments Rise for 2027
The lower premium projection comes in the same year that federal payments to Medicare Advantage plans are increasing.
CMS finalized its 2027 Medicare Advantage payment rates in April. The agency estimated that the final policies would increase payments to plans by an average of 2.48%, or more than $13 billion, before accounting for the full effect of projected risk-score growth.
The 2027 Medicare Advantage Rate Announcement put the expected increase at 4.98% after including estimated risk-score trends tied to population changes and coding.
Premiums are only one part of the money flowing through Medicare Advantage. Federal payments, plan bids, rebates and expected medical costs all feed into the final price and benefits offered to members.
Open Enrollment Starts October 15
Medicare Open Enrollment for 2027 coverage runs from October 15 through December 7, 2026.
People already in Medicare Advantage can stay in their current plan if it continues in 2027, switch to another Medicare Advantage plan or return to Original Medicare. Prescription drug coverage also needs attention if medications have changed during the year.
The $12 national premium is useful as a benchmark, but the number on an individual plan is more important. Members should compare the new premium with the 2026 price and read the Annual Notice of Change for updates to benefits, drug coverage and provider networks.
CMS has also published state-by-state Medicare plan figures for 2027, which show how much local premiums and plan counts can move even when the national average looks relatively stable.
For 2027, the main national number is clear. The average Medicare Advantage premium is projected to fall to $12 a month, down 16.5% from 2026. For current members, the more useful figure may be the one CMS paired with it: about eight in 10 should be able to keep their current plan at the same or a lower premium.
