Why stand-alone Part D premiums are changing for 2027

What the premium stabilization demonstration was

The Inflation Reduction Act changed the Part D drug benefit starting in 2025, including a yearly cap on what you pay out of pocket. To test whether premiums could be kept from swinging sharply in the first years of the new design, CMS started a voluntary Part D Premium Stabilization Demonstration in 2025 for stand-alone prescription drug plans, the separate drug plans people pair with Original Medicare. For people in a participating plan it did two things:

• a flat reduction to the plan's premium, and
• a limit on how much the premium could rise from one year to the next.

For 2026 CMS made the reduction smaller and loosened the limit, and said it was moving the program back toward normal market conditions. In July 2026 CMS confirmed it will end the demonstration at the end of 2026. Stand-alone drug plans set their 2027 premiums without the reduction and without the limit. Medicare Advantage plans with drug coverage were not part of the demonstration.

What that means for your 2027 premium

CMS projects the national average stand-alone drug plan premium to be nearly flat from 2026 to 2027. An average hides a lot: some plans go up, some go down, and a plan that was held down by the demonstration's limit may rise more than the average now that the limit is gone. The only number that matters for you is your own plan's 2027 premium, alongside the other 2027 plans in your county.

A second figure moves every year: the national base beneficiary premium, $38.99 a month in 2026 and $41.33 for 2027. It isn't what your plan charges; it's the starting point CMS uses in the premium formula, and the law limits its growth to 6% a year through 2029. It is also what the Part D late enrollment penalty is figured on: 1% of the base premium for each month you went without Part D or other creditable drug coverage, so a penalty can grow a little each year along with it.

The deductible and the out-of-pocket cap for 2027

• Deductible. The most a Part D plan can charge as a deductible rises from $615 in 2026 to $700 in 2027. Plans can set a lower deductible or none; yours is in the ANOC.
• Out-of-pocket cap. In 2026, once what you've paid for covered drugs reaches $2,100, you pay nothing more for covered Part D drugs that year. The cap goes up for 2027 by the yearly adjustment the law requires; CMS published the 2027 amount in its 2027 Rate Announcement (Table V-2). The cap is the same in every Part D plan, but the premium you pay to have it is not.

The deductible and the cap are why I compare drug plans on total yearly cost, not premium alone. A lower premium with a full deductible can cost more over the year than a higher premium with none, depending on what you take.

How to check your own plan's 2027 premium

1. Find your Annual Notice of Change. Your plan sent it in September (by mail or in the member portal). The premium for 2026 and 2027 is on the first pages, next to the deductible. If you can't find it, call the number on your member card. The ANOC reading guide covers the rest of the document.
2. Look the plan up on Medicare Plan Finder at Medicare.gov/plan-compare. Enter every drug you take, with the dose, and your pharmacy. It shows each 2027 plan's premium, deductible and estimated yearly cost for your drugs.
3. Compare with the other plans in your county. The 2027 plan list is out; 2026 to 2027 plan changes shows which plans are new or ending in the Capital Region counties.
4. Check the formulary, not only the premium. A plan that kept its premium but moved one of your drugs to a higher tier, or added prior authorization, can cost more. The Part D page explains tiers and pharmacies.

If the premium is hard to pay

Extra Help (the federal Low-Income Subsidy) lowers Part D premiums, deductibles and copays. Medicare.gov lists no plan premium and no deductible for people with Extra Help in 2027, with low copays per prescription. You get it automatically if you have full Medicaid, a Medicare Savings Program, or SSI; anyone else applies through Social Security. People with Extra Help may be able to change drug coverage once a month instead of waiting for the fall. Income and resource limits and how to apply are on Extra Help for Part D.

EPIC is New York's prescription program for people 65 and over, and it sits behind your Part D plan. EPIC pays the Part D premium for members with lower incomes; higher-income members pay their own premium, and EPIC lowers their EPIC deductible instead. You must be in a Part D plan to use EPIC. Joining EPIC gives you a Special Enrollment Period to enroll in a Part D plan, and members get one plan change a year outside the usual windows. EPIC's helpline is 1-800-332-3742. The income limits and the Fee Plan and Deductible Plan are in the EPIC guide.

Switching between October 15 and December 7

The Open Enrollment Period runs October 15 to December 7, 2026. A new drug plan you choose in that window starts January 1, 2027, as long as the plan gets your request by December 7.

The January 1 to March 31 Medicare Advantage Open Enrollment Period is only for people already in a Medicare Advantage plan. If you have Original Medicare with a stand-alone drug plan, December 7 is generally your last chance to change drug plans for 2027, unless you qualify for a Special Enrollment Period such as the ones that come with Extra Help or EPIC. If your premium went up, decide now rather than in January.

What I do with your notice

For clients with stand-alone drug plans, I run each person's prescriptions and pharmacy through every 2027 drug plan in their county in October and send a short note: stay, or switch, and why. If you're not a client, send me the premium page of your ANOC and your drug list and I'll do the same. There's no fee. Send it or book a call.

We do not offer every plan available in your area. Currently we represent 10 organizations which offer 81 products in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options. 1-800-MEDICARE (TTY 1-877-486-2048) is available 24 hours a day, 7 days a week. Insurers' legal names and home offices: carriers page.