Medicare Advantage 2027: Average Premium Drops, What to Review Before Choosing

The average monthly premium for Medicare Advantage for the following year would drop from $14.37 in 2026 to $12 in 2027, according to the projection that CMS published. The difference equals 16.5%, but it does not mean that all members will pay less. Find out here what you need to know about your insurance for 2027.

The news arrives before the period to review coverage. For beneficiaries and their families, the practical question is how much their complete plan will cost and whether it will maintain the services they need.

What Changes and What Remains Pending

It is important to know that the information refers to the national average of private Medicare Advantage plans; it is neither a single rate nor a reduction of all Medicare costs. In that sense, the amounts and benefits of each option must be reviewed individually.

Reuters reported that some insurers have reduced their offerings in less profitable markets. That is why it is important to verify that the plan will continue to be available in your county or that of the beneficiary.

There are different factors, however, that can affect the final cost of insurance, one of them being the drug deductible: premium and deductible are different concepts. A lower premium can coexist with other expenses.

Compare Total Cost, Not Just the Monthly Payment

Medicare explains its different costs, including premiums, deductibles, copays, and coinsurance. However, before choosing, it is important to review:

• The plan’s monthly payment and any other applicable Medicare payments.
• The deductible and expenses for consultations, hospitalizations, and prescriptions.
• The out-of-pocket spending limit that applies and the services that are excluded.
• Whether your doctors, hospitals, and pharmacies participate in the network.
• Whether your medications are covered and what requirements they have.

To understand the differences between parts of the program, consult our Medicare guide for Latino families. If you are not yet enrolled, you can also review how to apply for Medicare without receiving Social Security retirement benefits.

Dates and Steps to Review Coverage

Medicare open enrollment will take place from October 15 to December 7, 2026. CMS also indicates that information about next year’s plans will be available starting in October.

Review the Annual Notice of Changes—ANOC—and the Evidence of Coverage sent by your insurer. Compare the 2027 documents with your current needs; do not assume that conditions remain the same.

Use the official Medicare comparison tool or call 1-800-MEDICARE to request help with your options.

Frequently Asked Questions

Will My Premium Automatically Drop to $12?

No. It is the weighted average projected for the set of plans, not the guaranteed price of your coverage.

Does a Lower Premium Guarantee Annual Savings?

No. Service usage, copays, prescriptions, and the network also matter. The comparison should include all expenses.

Do I Have to Change Plans?

Not necessarily. According to CMS, if the plan continues to be offered and meets your needs for the coming year, you can keep it without making changes.

Information verified on September 30, 2026.