Medicare Advantage premiums expected to drop more than 16% in 2027, CMS projects
XLV•CMS projects the weighted average monthly Medicare Advantage premium will fall to $12 in 2027 from $14.37 in 2026, a drop of more than 16%. Projected enrollment is 34 million, or 47.4% of Medicare enrollees, though CMS expects the final figure to be higher.
1. Premiums and enrollment
CMS said the weighted average monthly premium across Medicare Advantage plans, including prescription drug and special needs plans, is projected to fall to $12 in 2027 from $14.37 in 2026. Projected enrollment is 34 million, representing 47.4% of people enrolled in Medicare; the agency expects enrollment ultimately to exceed that estimate.
2. Plan changes and coverage
Insurers have exited less-profitable markets as costs rise. Humana reduced its plan footprint more than peers, with Barclays estimating 3,995 gross plan exits affecting 942,000 members, or 19% of its retail Medicare Advantage membership; UnitedHealth and CVS Health also reduced offerings, while Elevance’s footprint was largely stable. CMS projects average premiums for prescription drug coverage in Medicare Advantage to fall 38%, while standalone Part D premiums are likely to rise by less than $1 per month. More than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan, and 97% to 10 or more options.
