The Trump administration is projecting significant declines in premiums for Medicare Advantage plans in 2027.
The Centers for Medicare & Medicaid Services said Monday that it expects weighted MA premium costs to decline by more than 16% in 2027 compared to 2026, with Medicare Advantage prescription drug premiums set to decrease by 38% year-over-year.
The weighted average monthly premium across all MA plans, which includes MA prescription drug plans as well as special needs plans, is set to decrease from $14.37 in 2026 to $12 in 2027, the agency said. CMS also said it expects supplemental benefits to “remain stable” in the coming year.
Based on data from insurers, CMS said that enrollment in Medicare Advantage is set to be 34 million for 2027, representing about 47.4% of all Medicare eligibles. The agency added that it expects enrollment to ultimately be higher than these estimates.
CMS said that 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan during open enrollment, with 97% having 10 or more plan options to choose from.
“CMS is fighting to keep high-quality care options affordable and accessible for the millions of beneficiaries who rely on Medicare Advantage and Part D prescription drug plans,” said CMS Administrator Mehmet Oz, M.D., in the press release.
In addition, CMS projects that average Part D premiums are set for a slim increase in the coming year, growing from $35.09 in 2026 to $36 in 2027. Most (88%) of non-low-income beneficiaries can access a basic Part D plan with a monthly premium of $10.30 or less; 93% can access an enhanced Part D plan with a premium of under $6.
In MAPD plans, after Medicare Advantage rebates, the average monthly premium in 2027 is set to be $7, down 38% from $11.32 in 2026.
Medicare Open enrollment begins Oct. 15 and continues through Dec. 7.