Part D Premiums Set to Rise 50% on Average for 2027

Standalone Medicare Part D premiums are projected to jump by an average of 50% in 2027, according to a new analysis from KFF, the health policy research organization formerly known as the Kaiser Family Foundation. Medicare Part D is the federal prescription drug benefit that beneficiaries buy either as a standalone plan or bundled into a Medicare Advantage plan. The finding, reported by Healthcare Dive on November 2, 2026, arrives in the middle of this year's Medicare Open Enrollment Period, the annual window from October 15 through December 7, 2026, during which beneficiaries can switch Part D, Medicare Advantage, or Original Medicare coverage for the following plan year.

According to KFF's analysis as reported by Healthcare Dive, the increase is not evenly distributed. The think tank found wide variance in costs between individual Part D plans, meaning some beneficiaries could see far smaller increases while others face premiums well above the 50% national average. KFF is urging seniors to shop carefully for prescription drug coverage during this year's enrollment window rather than assume their current plan will remain the best, or even an affordable, option for 2027. Read the original Healthcare Dive report here.

What the Report Confirms, and What It Doesn't

The reporting supplied here confirms the 50% average premium increase for 2027 and the wide plan-to-plan variance that KFF identified, but it does not break down which specific insurers or plans are driving the spike, how the increase differs by state, or whether it applies equally to standalone Prescription Drug Plans (PDPs) versus the drug coverage bundled into Medicare Advantage plans (MA-PD). Readers should treat the 50% figure as a national average rather than a forecast for any single plan or region.

Industry analysts have separately pointed to the $2,000 annual out-of-pocket cap on Part D drug costs, which took full effect in 2025 under the Inflation Reduction Act, as a factor that has pressured insurers to raise premiums or scale back plan offerings, since the cap shifted more of the risk for high drug costs onto plan sponsors. Neither the Healthcare Dive report nor the KFF description provided here states that this cap specifically caused the 2027 increase, so that connection should be read as broader industry context rather than a confirmed explanation tied to this particular finding.

Key Takeaway

If your Part D or Medicare Advantage drug plan sends a 2027 Annual Notice of Change (ANOC) showing a steep premium increase, don't let it auto-renew without checking alternatives. Compare plans through Medicare's Plan Finder at Medicare.gov or with a licensed agent before the Open Enrollment Period closes on December 7, 2026, since KFF found that costs vary widely between plans even in the same area.

How This Affects Your 2027 Coverage Decisions

A 50% average premium jump changes the math for anyone comparing a standalone Part D plan against a Medicare Advantage plan that bundles drug coverage. If your current PDP premium is rising sharply for 2027, it's worth checking whether a Medicare Advantage plan in your area offers comparable drug coverage at a lower combined cost, while weighing the tradeoffs in provider networks and referral requirements that typically come with Advantage plans. For Medicare Supplement, or Medigap, policyholders who pair their coverage with a standalone Part D plan, this premium increase applies directly to the drug plan portion of your coverage and is separate from your Medigap premium.

Beneficiaries with limited income should also check eligibility for the Part D Low-Income Subsidy, commonly called Extra Help, a federal program that can substantially reduce or eliminate Part D premiums and copays for qualifying enrollees. State Pharmaceutical Assistance Programs, where available, can provide additional relief. Because KFF's analysis highlights variance rather than a uniform increase, running your specific medication list through Medicare's Plan Finder tool, rather than relying on this year's premium, is the most reliable way to see how a 2027 increase affects your household.

What to Do Before December 7, 2026

Three steps matter most this enrollment season. First, read the Annual Notice of Change mailed by your current plan, which discloses the exact 2027 premium, deductible, and formulary changes for that plan. Second, re-run your medication list through Medicare's Plan Finder, since KFF's finding of wide cost variance means the lowest-premium plan in your area this year is not guaranteed to be the lowest-premium plan for 2027. Third, if your budget is tight, ask a licensed Medicare agent or your State Health Insurance Assistance Program (SHIP) whether you qualify for Extra Help or a Medicare Savings Program, either of which can offset the kind of premium increase KFF is reporting for 2027.

Medicare Plan Path will continue tracking Part D premium and formulary changes as insurers finalize their 2027 plan details, and we encourage readers to compare options directly through Medicare.gov or a licensed agent rather than assume renewal is the simplest or cheapest path.