These are the projected Medicare costs for 2027, shown next to the 2026 amounts. CMS usually announces the official 2027 Part A and Part B amounts in the fall. Until then, the 2027 Part A and Part B figures on this page are projections from the 2026 Medicare Trustees Report. The 2027 Part D amounts are final. The 2026 amounts were announced on November 14, 2025, by the Centers for Medicare & Medicaid Services.
2026 vs. 2027 Medicare Costs at a Glance
Official 2027 Part A and Part B amounts are usually announced by CMS in the fall. Until then, here are the projections from the 2026 Medicare Trustees Report, plus the Part D amounts CMS has already finalized for 2027.
| 2026 | 2027 | Status | |
|---|---|---|---|
| Part B premium | $202.90 / mo | $209.50 / mo | Projected |
| Part B deductible | $283 | $292 | Projected |
| Part A deductible | $1,736 | $1,788 | Projected |
| Part A coinsurance, days 61 to 90 | $434 / day | $447 / day | Projected |
| Part A lifetime reserve days | $868 / day | $894 / day | Projected |
| Skilled nursing, days 21 to 100 | $217 / day | $223.50 / day | Projected |
| Part D out-of-pocket cap | $2,100 | $2,400 | Final |
| Part D max deductible | $615 | $700 | Final |
| Part D base premium | $38.99 / mo | $41.33 / mo | Final |
Part A - Hospital Coverage
Inpatient Hospital Stay
A benefit period starts when you are admitted and ends after you have been out of the hospital or a skilled nursing facility for 60 days in a row.
-
Part A Premium $0$0
Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation, and some home health care services. Approximately 99% of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment, as determined by the Social Security Administration.
-
Part A Deductible $1,736$1,788+$52
-
Part A Coinsurance - Days 1 - 60 $0$0
Per day of each benefit period.
-
Part A Coinsurance - Days 61 - 90 $434$447+$13
Per day of each benefit period.
-
Part A Coinsurance - 60 Lifetime Reserve Days $868$894+$26
Per day after day 90 of each benefit period.
Skilled Nursing Facility Stay
A 3-day inpatient hospital stay is required first.
-
Part A Coinsurance - Days 1 - 20 $0$0
Per day of each benefit period.
-
Part A Coinsurance - Days 21 - 100 $217$223.50+$6.50
Per day of each benefit period.
-
Part A Coinsurance - Days 101 and Beyond All costsAll costs
You pay the full cost after day 100 of each benefit period.
Part B - Medical Coverage
-
Part B Premium $202.90$209.50+$6.60
-
Part B Deductible $283$292+$9
2027 Medicare Part B Costs
The standard Part B premium is projected to be $209.50 a month in 2027, up $6.60 from $202.90 in 2026. The annual Part B deductible is projected to be $292, up from $283 in 2026. After you meet the deductible, you generally pay 20% of the Medicare-approved amount for covered services. These are projections from the 2026 Medicare Trustees Report. CMS will announce the official 2027 amounts later this fall.
Your Part B premium is based on your income from two years earlier, so your 2027 premium will use the income on your 2025 tax return. If your modified adjusted gross income (MAGI) is above a certain level, you pay an extra amount called the Income-Related Monthly Adjustment Amount (IRMAA). The 2027 IRMAA brackets have not been published yet. Until they are, the chart below shows the 2026 total Part B premium and Part D IRMAA for each income bracket. For a full breakdown of 2026, see How Much Is Medicare Part B in 2026?
| If your Annual Income in 2024 was | In 2026 You Pay | ||||
| Individual Tax Return | Joint Tax Return | Married & Separate Tax Return | Part B IRMAA | Total Part B Premium | Part D IRMAA |
| $109,000 or less | $218,000 or less | $109,000 or less | $0 | $202.90 | $0 |
| $109,001 to $137,000 | $218,001 to $274,000 | N/A | $81.20 | $284.10 | $14.50 |
| $137,001 to $171,000 | $274,001 to $342,000 | N/A | $202.90 | $405.80 | $37.50 |
| $171,001 to $205,000 | $342,001 to $410,000 | N/A | $324.60 | $527.50 | $60.40 |
| $205,001 to $499,999 | $410,001 to $749,999 | $109,001 to $391,000 | $446.30 | $649.20 | $83.30 |
| Above $500,000 | Above $750,000 | Above $391,000 | $487.00 | $689.90 | $91.00 |
If your income has dropped because of a life-changing event, such as retirement or the loss of a spouse, you can ask Social Security to recalculate your IRMAA using your more recent income.
2027 Medicare Part D Costs
Deductible: Part D plans can charge a deductible of up to $700 in 2027, up from $615 in 2026. Some plans have no deductible.
Initial coverage: Once you meet the deductible, you pay a copay or coinsurance (typically 25% of the drug’s cost) and your plan and the drug manufacturer pay the rest.
Out-of-pocket cap: Once your out-of-pocket costs for covered drugs reach $2,400 in 2027 (up from $2,100 in 2026), you enter catastrophic coverage and pay nothing for covered drugs for the rest of the year. Your deductible, copays, and coinsurance all count toward the cap.
No more donut hole: The coverage gap, or “donut hole,” ended in 2025, when the first annual out-of-pocket cap took effect.
Manufacturer Discount Program: The Manufacturer Discount Program replaced the old Coverage Gap Discount Program in 2025. Drug makers now pay part of the cost of brand-name drugs in the initial coverage and catastrophic phases.
Review your plan now: The Annual Enrollment Period runs October 15 to December 7, 2026, for coverage starting January 1, 2027. It is the time to check how the higher deductible and cap affect your drugs.
2027 Medicare Part D – Premium Costs
Each Part D insurance company sets its own premiums. CMS projects the average premium for a stand-alone Part D plan will be about $36 a month in 2027, up from $35.09 in 2026, but actual premiums range from $0 to more than $100 a month depending on the plan and where you live. The 2027 Part D base beneficiary premium, which is used to calculate late enrollment penalties, is $41.33, up from $38.99 in 2026. Some carriers offer $0 premium plans, and most iHealthBrokers clients pay less than $15 a month for their Part D plan.
If your income is above a certain level, you also pay a Part D IRMAA on top of your plan’s premium. You can find the amounts in the Part B income chart above.
2027 Medicare Advantage & Medigap Pricing
Insurance companies set the premiums for Medicare Advantage and Medigap plans, so prices vary by plan, company, and ZIP code. CMS projects the average Medicare Advantage premium will be about $12.00 a month in 2027, down from $14.37 in 2026. We cover how the two compare in our Medicare Advantage vs. Medigap article.
Comprehensive Guide to Medicare Changes in 2027
The tables above cover what you will pay for Part A, Part B, and Part D in 2027. This guide covers the other changes that can affect your costs: new negotiated drug prices, shifts in Medicare Advantage, what to expect from Medigap premiums, and how to use the Annual Enrollment Period to your advantage.
Medicare Part D Prescription Drug Reform
Part D continues to change under the Inflation Reduction Act provisions that began in 2025. Beyond the higher deductible and out-of-pocket cap shown above, two changes matter most for 2027.
Negotiated Drug Prices
On January 1, 2027, negotiated prices take effect for 15 more drugs under the Medicare Drug Price Negotiation Program, adding to the first 10 drugs whose negotiated prices began in January 2026. The 2027 list includes Ozempic, Rybelsus and Wegovy, Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet, and Otezla. If you take one of these medications, you may see lower costs, depending on your plan’s design.
Medicare Prescription Payment Plan
The Medicare Prescription Payment Plan, often called the “smoothing” program, lets you spread your drug costs over the calendar year instead of paying them all at the pharmacy counter. Starting in 2026, participation renews automatically, so if you are enrolled you will generally stay enrolled for 2027 unless you opt out. It does not lower your total drug costs, but it turns large pharmacy bills into manageable monthly payments, which can help if you take expensive drugs such as many cancer medications.
Medicare Advantage Plan Trends and Market Shifts
Medicare Advantage, or Part C, continues to be a popular alternative to Original Medicare. CMS projects the average Medicare Advantage premium will fall to about $12.00 a month in 2027, from $14.37 in 2026, with about 5,532 plans available nationwide, compared with 5,553 in 2026.
Carrier Exits and Network Changes
Plans, service areas, and provider networks can change every year. Verify that your specific plan is still available in your ZIP code for 2027 and that your doctors are still in-network. If your plan is terminating, you have a Special Election Period to choose new coverage, but you must take action to avoid a gap in insurance.
Benefit Adjustments
Premiums for Medicare Advantage plans remain competitive, often at or near zero dollars per month, but the “extras” can change from year to year. Supplemental benefits such as over-the-counter allowances, dental maximums, and transportation services may be different in 2027 than in 2026, so review your Annual Notice of Change letter carefully.
Medigap Insurance Considerations
Medicare Supplement plans, also known as Medigap, remain the most stable form of coverage for those seeking predictable costs. They do not have the annual network changes common with Medicare Advantage, but they do come with premium adjustments.
Premium Rate Increases
The benefits within standardized Medigap plans like Plan G and Plan N remain unchanged in 2027. A Plan G purchased in 2027 covers the exact same gaps as a Plan G purchased in previous years. However, you should expect premium increases. As the cost of medical care and the Part B deductible rise, monthly premiums for existing and new policies generally rise each year.
The Value of Plan G and Plan N
For those turning 65 in 2027, Plan G remains the most comprehensive option available, covering all Medicare gaps except the Part B deductible, projected at $292. Plan N is an attractive lower-premium alternative, requiring you to pay the Part B deductible plus small copayments for doctor and emergency room visits. As the Part B deductible rises, the out-of-pocket difference between Plan G and Plan N widens slightly, making premium savings versus out-of-pocket risk an important conversation to have with your broker.
Strategic Enrollment Advice for 2027
Do not assume your current coverage will automatically be the best fit for 2027. The Annual Enrollment Period runs October 15 to December 7, 2026, for coverage that starts January 1, 2027. Changes in Medicare Advantage benefits mean you need to look beyond the premium. If you are approaching age 65, locking in a Medigap plan during your Medigap Open Enrollment Period is the surest way to get coverage regardless of your health, because companies cannot use medical underwriting during that window.
We recommend reviewing your Annual Notice of Change, checking your prescriptions against the 2027 formularies, and verifying that your preferred physicians remain in-network if you choose a Medicare Advantage plan. As an insurance broker, my goal is to ensure your health coverage supports your financial security throughout your retirement.
