What’s Changing in Medicare for 2027? A 2026 Baseline

If you are getting ready for Medicare in 2027, there is one thing you should understand first: the premiums and deductibles for Part A and Part B are not final figures until CMS makes its official announcement each fall. As of August 2026, here is a careful separation of what is actually confirmed from what is still an official estimate.

Part A and Part B: what is confirmed, and what is not

On the confirmed 2026 figures, the Part B monthly premium is $202.90 and the annual deductible is $283. The Part A hospital deductible is $1,736, which applies to the first 60 days of an inpatient stay. For 2027, the Medicare Trustees Report estimates a Part B monthly premium of $209.50 — but that is an estimate, not a final CMS figure. The actual amount has to be confirmed through the official announcement in the fall. So be careful with anything you read online that presents a 2027 premium as though it were already settled.

Part D: a real structural change is coming

There is an important structural change in Part D prescription drug coverage. The annual out-of-pocket cap on prescription drugs, introduced in 2025, is $2,100 as of 2026. Once you pass that cap, you pay nothing further for covered prescription drugs for the rest of the year.

Meanwhile, the Part D premium stabilization demonstration program that has been running since 2025 ends on December 31, 2026. That program is the reason Part D premiums stayed relatively steady through 2026; starting in 2027, insurers will set their premiums without that support. CMS has announced a 2027 Part D base beneficiary premium of $41.33, but that is only a reference figure used for calculation — what you actually pay each month varies by plan. Your premium can change even if you keep the exact same plan, so it is important to check it yourself before open enrollment. The $35 monthly cap on insulin and the Medicare drug price negotiation benefits both continue in 2027.

Medicare Advantage: be careful what you read

There is a lot of bad information circulating about Medicare Advantage (Part C), so this one needs particular care. The final CMS figure for the average 2027 Medicare Advantage payment increase is 2.48%, or 4.98% once the risk score trend is included. Some sources incorrectly report a 0.9% increase; that is not the final number. So you cannot conclude that benefits will be cut sharply nationwide on the grounds that the payment rate is low.

What is true is that Medicare Advantage plans can change their dental, vision, gym and prescription drug benefits every year, and it varies by insurer and by region. The most important thing you can do is read the Annual Notice of Change that arrives by mail in the fall, carefully, and confirm for yourself that the prescriptions you take and the providers you see are still covered in 2027.

Higher earners: check your IRMAA

If you are a higher-income enrollee, you also need to check IRMAA. IRMAA for 2027 is generally applied based on the income reported on your 2025 tax return. If your income was unusually high in 2025 — because you sold real estate or stock, for example — your Part B and Part D premiums in 2027 may be billed higher than you expect.

The reverse is also true: if your income has dropped substantially because of retirement, a reduction in earnings, or the death of a spouse, you can request a redetermination from SSA and be moved to a lower bracket. It is worth checking whether that applies to you.

Open enrollment dates, and what to do

Open enrollment for 2027 runs from October 15 to December 7, 2026. During that window, the smartest approach is to use the Plan Finder at Medicare.gov to compare plans against the prescriptions you actually take and the providers you actually see. If you do nothing, you will be automatically re-enrolled in your current plan — but the premium or the benefits may have changed, so it is worth making a habit of checking every year. For the official 2027 Part A and Part B costs, check back for updated figures after the CMS announcement in the fall.

This article was written using data published by CMS and the Medicare Trustees as of August 2026. Some details may change once final 2027 premiums and plan information are announced.