2027 Medicare Costs: Premiums, Deductibles and Limits

2027 Medicare Costs at a Glance

CMS has now released most of the numbers that set what you’ll pay in 2027. The average Medicare Advantage premium falls to $12.00 a month, the Part D out-of-pocket cap rises to $2,400 and the Part D deductible rises to $700. The official 2027 Part B premium and Part A amounts usually come out in mid-November; until then, the 2026 figures below still apply for budgeting.

Sources: CMS 2026 Part A and B fact sheet, CMS 2027 Rate Announcement, CMS 2027 landscape release (September 28, 2026), CMS Medigap high-deductible and Plan K and L notices, and the 2026 Medicare Trustees Report.

Medicare Part B Premium in 2027

Part B covers doctor visits, outpatient care and preventive services. The standard premium is $202.90 a month in 2026, up from $185.00 in 2025, and the deductible is $283. CMS usually announces the next year’s amounts in mid-November. The 2026 Medicare Trustees Report projected a 2027 premium of $209.50 and a deductible of $292, but those are estimates, not the official amounts.

Social Security benefits rise 3.6% in January 2027, so for most people the cost-of-living increase will more than cover a Part B increase of that size. See how the 2027 Social Security COLA affects your Medicare costs.

Higher-income surcharges (IRMAA)

If your income is above $109,000 (single) or $218,000 (married filing jointly), you pay more for Part B and Part D. In 2026, the total Part B premium ranges from $284.10 to $689.90 a month depending on income, plus a Part D surcharge of $14.50 to $91.00. CMS will publish 2027 brackets with the Part B announcement.

Medicare Advantage Costs in 2027

• Average premium: $12.00 a month, down from $14.37 in 2026, according to CMS.
• Plan choice: about 5,532 Medicare Advantage plans nationwide, and 97% of people with Medicare can choose from 10 or more.
• Enrollment: CMS projects about 34 million people, or 47.4% of Medicare, will be in Medicare Advantage.
• Out-of-pocket limit: no plan can charge more than $9,850 in-network, or $14,800 combined in- and out-of-network for PPOs, in 2027.
• Drug coverage: the average drug portion of Medicare Advantage premiums falls to $7 a month, from $11.32.

You still pay your Part B premium when you’re in a Medicare Advantage plan. See the best Medicare Advantage companies for 2027 and how the out-of-pocket limit works.

Medicare Part D Costs in 2027

• Deductible: up to $700, from $615 in 2026.
• Out-of-pocket cap: $2,400, from $2,100. Once you reach it, you pay nothing more for covered drugs for the rest of the year.
• Average stand-alone premium: $36 a month, from $35.09. The temporary Part D premium stabilization demonstration ended after 2026.
• Payment plan: the Medicare Prescription Payment Plan still lets you spread drug costs across the year in monthly payments. It doesn’t lower your total cost.
• Lower negotiated prices: Medicare’s negotiated prices for 15 more drugs, including Ozempic, Wegovy, Trelegy Ellipta and Xtandi, take effect January 1, 2027. See which drugs get cheaper in 2027.

If your income is limited, Extra Help can lower your drug costs. In 2027, Extra Help copays are no more than $5.80 for generics and $14.40 for brand-name drugs for most enrollees.

Medigap Costs in 2027

Medigap premiums depend on your insurer, state, age and plan. The federal amounts that changed for 2027:

• High-deductible Plan G and Plan F: $3,050 deductible, from $2,950.
• Plan K out-of-pocket limit: $8,360. Plan L: $4,180.

Compare Medicare Supplement Plan G and the best Medigap companies for 2027.

How to Keep Your 2027 Costs Down

1. Read your Annual Notice of Change. Your plan’s premium, copays, drug list and network can all change for 2027.
2. Compare total yearly cost. Add premiums, deductibles and expected copays, not just the monthly premium.
3. Check Extra Help and Medicare Savings Programs. In 2026, a Medicare Savings Program can pay your Part B premium if your monthly income is up to $1,816 for one person ($2,455 for a couple) and your resources are limited.
4. Switch during open enrollment. Medicare open enrollment runs October 15 to December 7, 2026.

Action step: Discover 2027 Medicare plans at Healthcare.com or call 877-388-1028 TTY 711, Monday to Friday, 8:00 a.m. to 8:00 p.m. ET to connect with a licensed insurance agent.

Frequently Asked Questions

What is the Medicare Part B premium for 2027?

CMS hasn’t announced it yet; the official amount usually comes out in mid-November. The 2026 premium is $202.90 a month, and the 2026 Medicare Trustees Report projected $209.50 for 2027.

What is the Part D out-of-pocket maximum for 2027?

$2,400, up from $2,100 in 2026. After you reach it, you pay $0 for covered drugs for the rest of 2027.

What is the average Medicare Advantage premium for 2027?

$12.00 a month, down from $14.37 in 2026, according to CMS. Many plans charge $0.

What is the Part D deductible for 2027?

Up to $700, up from $615 in 2026. Some plans charge a lower deductible or none.

Will my Medicare Advantage plan change in 2027?

Possibly. Check your Annual Notice of Change letter. If your plan is ending, see what to do if your Medicare Advantage plan is leaving.

Sources

• CMS, 2026 Medicare Parts A and B Premiums and Deductibles
• CMS, CY 2027 Rate Announcement
• CMS, Medicare Advantage and Part D Expected to Remain Stable in 2027 (September 28, 2026)
• CMS, 2027 Part D National Average Bid and Base Premium
• CMS, 2027 Medigap High-Deductible Amount
• CMS, 2027 Medigap Plan K and L Limits
• 2026 Medicare Trustees Report
• Medicare.gov, Medicare Savings Programs