Reviewed by Scotty Lewis, CSA, RSSA, licensed independent insurance agent
The first projections for 2027 Medicare costs are out, and several of them deserve your attention before open enrollment closes. Here is a clear look at what has been reported, what is still uncertain, and the steps we recommend taking now.
Medicare 2027 Costs: Quick Answers
How much will Medicare Part B cost in 2027?
The 2026 Medicare Trustees Report projects a standard Part B premium of $209.50 per month in 2027, up $6.60 from $202.90 this year. That is a projection. CMS is expected to announce the official amount in November.
What is the Part D out-of-pocket cap in 2027?
The annual out-of-pocket cap for Part D drug coverage rises by $300 to $2,400 in 2027, and the standard Part D deductible rises to $700 from $615. Unlike the Part B premium, these Part D amounts are final, not projections.
What is IRMAA?
IRMAA is an extra monthly charge added to Part B and Part D premiums for higher-income enrollees. For 2027 it generally depends on your 2025 federal tax return. If a life-changing event lowered your income, you can ask Social Security to use a more recent year with Form SSA-44.
When can I change my Medicare plan for 2027?
Open enrollment runs from October 15 to December 7, 2026, and changes take effect January 1, 2027. If you are already in a Medicare Advantage plan, you also get one change between January 1 and March 31.
Part B premiums are projected to rise modestly
The 2026 Medicare Trustees Report projects the standard Part B premium at $209.50 per month in 2027, an increase of $6.60 over this year’s $202.90. That would be the smallest percentage increase since 2023. (MOAA) It follows a sharp increase for 2026, when the premium rose 9.7% from $185.00. (24/7 Wall St) Last year’s report had projected a higher 2027 figure of $218.60. (MOAA)
The projection comes with caveats. Some private forecasters expect a 2027 premium between $216 and $219, citing a history of underestimates in the government’s projections. (24/7 Wall St) The trustees’ own report also anticipates that premiums will rise more than twice as fast, on average, over the following eight years. (MOAA) Anyone building a retirement budget should plan for continued increases.
CMS is expected to announce the official 2027 rates, including the income-related brackets, in November. (MOAA) We will update this post when they are released.
What the increase means in dollars
If the trustees’ projection holds, the $6.60 monthly increase adds up to $79.20 over a full year. If the private forecasters are closer, a premium of $216 to $219 would be $13.10 to $16.10 more per month than you pay today, or roughly $157 to $193 over a year. For many retirees the Part B premium comes out of the Social Security payment, so the increase shows up as a smaller deposit, not a separate bill, and it can take back part of a cost-of-living raise. (24/7 Wall St via AOL) Social Security announces its cost-of-living adjustment in October and the Part B increase follows in November, so January’s deposit is the first one to show both. (24/7 Wall St)
Part D deductible and out-of-pocket cap are increasing
Prescription drug coverage will also change. The standard Part D deductible will rise to $700 in 2027 from $615, and the annual out-of-pocket cap will increase by $300 to $2,400. (Kiplinger) For anyone taking costly medications, the cap defines the most they will pay in a given year. The Medicare Prescription Payment Plan, which allows enrollees to spread drug costs across the year, will continue in 2027. (Bottom Line)
Income from 2025 will affect 2027 premiums
Higher-income enrollees pay an additional charge known as IRMAA. For 2027, the determination generally relies on your 2025 federal tax return. (24/7 Wall St) A property sale, an IRA conversion, or any other unusual income event in 2025 could place you in a higher bracket. If your income has since dropped because of retirement or another qualifying life change, you may be eligible to appeal.
Social Security recognizes a short list of life-changing events that can lower an IRMAA charge: marriage, divorce or annulment, the death of a spouse, a work reduction or work stoppage, the loss of income-producing property, the loss of employer pension income, and receipt of certain employer payments. If one applies to you, Form SSA-44 asks Social Security to base your premium on a more recent tax year. Expect to provide evidence, such as pay stubs showing a change in hours. Not everyone who asks will qualify, so keep your notice and your paperwork together.
Plan changes can occur without any action on your part
Medicare Advantage and Part D plans revise their benefits, provider networks, and drug lists each year. Star ratings, which many people use to compare plans, are also changing for 2027. (Bottom Line) Allowing a plan to auto-renew can leave you with a changed drug list and higher copays that you do not discover until you fill a prescription. (24/7 Wall St)
Recommended steps before December 7
Open enrollment runs from October 15 to December 7. (24/7 Wall St) We recommend the following.
- Review the Annual Notice of Change your plan has mailed you.
- Confirm that your doctors and pharmacy remain in network.
- Check your prescriptions against your plan’s 2027 drug list.
- Review your 2025 income and consider your exposure to IRMAA.
- Compare your options for your ZIP code at Medicare.gov/plan-compare.
Free help in Tennessee
You do not have to sort this out alone, and not all of the help costs money. The Tennessee State Health Insurance Assistance Program (TN SHIP) offers free, unbiased counseling to Medicare-eligible Tennesseans, their families, and caregivers. You can reach it at 1-877-801-0044. Medicare itself answers questions at 1-800-MEDICARE (1-800-633-4227), available around the clock except some federal holidays. You can also compare plans in your ZIP code, with your own drugs, pharmacies, and doctors, at Medicare.gov/plan-compare. We are glad to go through your options with you as well, at no cost and with no obligation to switch.
Medicare rules are national, but plans, carriers, and networks vary by location. A plan that suits a retiree in Nashville may not be the right fit in Cookeville or Sparta. If you would like help comparing your options before the deadline, contact Upper Cumberland Life & Health or stop by our office. We will review your coverage with you, without pressure.
All 2027 figures other than the Part D amounts are projections until CMS publishes the final rates in November.
Sources:
- MOAA, Medicare Report Estimates Future Part B Premiums
- Kiplinger, Medicare 2027 Projections
- 24/7 Wall St, Medicare’s 2027 Part B Premium Is Projected to Push Past $215 a Month
- 24/7 Wall St via AOL, Medicare Just Ate Your Raise Again
- Bottom Line, Medicare Changes in 2027
- Medicare.gov, Medicare Plan Finder
- Tennessee Department of Disability and Aging, Tennessee State Health Insurance Assistance Program (TN SHIP)
- Social Security Administration, Form SSA-44, Medicare Income-Related Monthly Adjustment Amount: Life-Changing Event
- 24/7 Wall St, Social Security’s 2027 Raise Is Announced in October. Medicare’s Part B Increase Is Revealed in November
