Every fall, people on Medicare find out what the next year will cost. For 2027, some numbers are already final and others are still projections. The Part D drug numbers have been set by the Centers for Medicare and Medicaid Services. The Part B premium and the Part A deductible are usually announced in mid-November.
This guide pulls together what is known so far, and then does something the official pages do not: it adds the pieces up into a yearly total for each of the three main ways people get Medicare coverage.
2027 Medicare costs at a glance
| Cost | 2026 | 2027 | Status |
| Part B standard premium | $202.90 a month | about $209.50 a month | Projected (Medicare Trustees) |
| Part B deductible | $283 | about $292 | Projected |
| Part A hospital deductible | $1,736 | about $1,788 | Projected |
| Part A coinsurance, days 61 to 90 | $434 a day | about $447 a day | Projected |
| Skilled nursing coinsurance, days 21 to 100 | $217 a day | about $223.50 a day | Projected |
| Part D standard deductible (maximum) | $615 | $700 | Final |
| Part D out-of-pocket cap | $2,100 | $2,400 | Final |
| Part D base beneficiary premium | $38.99 | $41.33 | Final |
Sources: CMS 2026 fact sheet; 2027 Part D figures finalized by CMS; Part A and B projections from the 2026 Medicare Trustees Report, as reported by Kiplinger. Some independent forecasts put the 2027 Part B premium higher, near $219, so treat projections as estimates until CMS publishes the official amounts.
What changes and why it matters
Part B premium. If the projection holds, Part B will rise by about $6.60 a month. Because most people have the premium deducted from their Social Security check, it directly reduces the 2027 cost-of-living raise. With the 2027 COLA expected to be around 3.5%, the average retiree should still see a net increase, but it will be smaller than the headline number.
Part D cap. The cap on out-of-pocket costs for covered drugs rises from $2,100 to $2,400. Once you reach it, you pay nothing more for covered drugs for the rest of the year. The cap is adjusted every year for rising drug costs.
Part D deductible. Plans can charge a deductible of up to $700 in 2027. Many plans charge less or none, especially on lower-cost generic tiers.
Your yearly total: three ways to have Medicare
The premium alone does not tell you what Medicare costs. What matters is the total you could pay in a normal year and in a bad one. Here is a comparison for one person in 2027, using the projected Part B premium.
| Original Medicare + Medigap Plan G + Part D | Original Medicare + Part D, no supplement | Medicare Advantage with drug coverage | |
| Part B premium | $2,514 | $2,514 | $2,514 |
| Other premiums (estimate) | about $2,400 (Plan G plus drug plan) | about $480 (drug plan) | often $0 to a few hundred dollars |
| Typical year, few health problems | about $5,200 | about $3,500 | about $3,000 to $4,000 |
| Bad year, major illness | about $7,600 | No limit on the 20% Part B coinsurance | Up to the plan’s medical out-of-pocket limit plus drug costs up to $2,400 |
How to read the table:
- Medigap Plan G covers nearly all the costs Original Medicare leaves behind except the Part B deductible. With drugs capped at $2,400, a bad year costs roughly the premiums plus $292 plus $2,400. Plan G premium figures are estimates; they vary a great deal by state, age and insurer.
- No supplement keeps premiums low, but there is no annual limit on your 20% share of Part B costs, and hospital stays trigger the Part A deductible. A serious illness can run into five figures.
- Medicare Advantage plans have a yearly limit on medical out-of-pocket costs. For 2026, the maximum a plan can set for in-network care was $9,250, and many plans set lower limits. Drug costs are counted separately, up to the $2,400 Part D cap.
Who pays more: IRMAA in 2027
People with higher incomes pay more for Part B and Part D through the Income-Related Monthly Adjustment Amount. For 2026, surcharges start above $109,000 of income for single filers and $218,000 for joint filers, based on 2024 tax returns. For 2027, they will be based on 2025 returns. Independent projections put the first 2027 threshold around $111,000 to $113,000 for single filers. See our 2027 IRMAA brackets guide for the full table once CMS releases it.
Key dates for 2027 coverage
- October 15 to December 7, 2026: Medicare open enrollment. You can switch between Original Medicare and Medicare Advantage, change drug plans or change Advantage plans for 2027.
- Mid-November 2026: CMS typically announces official Part A and Part B amounts.
- January 1, 2027: New premiums, deductibles and plan changes take effect.
- January 1 to March 31, 2027: Medicare Advantage open enrollment, when people already in an Advantage plan can switch plans or return to Original Medicare once.
How to lower your Medicare costs
- Compare drug plans every year. Plans change which drugs they cover and at what price. Enter your exact prescriptions in the Medicare Plan Finder on Medicare.gov.
- Check your Annual Notice of Change. Your plan sends it by September 30. It lists changes to premiums, copays and covered drugs.
- Look at Medicare Savings Programs. If your income and assets are limited, your state may pay your Part B premium and possibly deductibles and coinsurance.
- Apply for Extra Help. This federal program lowers drug costs for people with limited income.
- Appeal IRMAA if your income dropped. Retirement, divorce or the death of a spouse can qualify you for a recalculation with Form SSA-44.
- Consider timing if you are new to Medicare. Your Medigap open enrollment period, the six months after you enroll in Part B at 65 or older, is the only time in most states when insurers must sell you a policy regardless of health.
If you are helping a parent
Open enrollment is a good time to sit down with a parent and review their coverage. Bring their list of medications and doctors, and compare plans together on Medicare.gov. Many people stay in the same drug plan for years without realizing a cheaper option covers the same prescriptions.
If you are approaching 65
Your Initial Enrollment Period is the seven months around your 65th birthday. Signing up late for Part B or Part D, without other qualifying coverage, can lead to a lifelong penalty. If you are still working with employer coverage, check whether it counts as creditable coverage before you delay.
Frequently asked questions
How much will Medicare Part B cost in 2027? The Medicare Trustees project about $209.50 a month, up from $202.90 in 2026. The official figure is usually announced in November.
What is the Part D out-of-pocket maximum for 2027? $2,400, up from $2,100 in 2026. After you reach it, you pay nothing more for covered drugs that year.
Is Medicare Advantage cheaper than Medigap? Usually in premiums, yes. But Advantage plans have copays up to a yearly limit and use networks, while Medigap costs more monthly and gives more predictable costs with any doctor who takes Medicare. The right choice depends on your health, budget and preferences.
When will 2027 Medicare premiums be announced? CMS normally announces Part A and Part B amounts for the next year in mid-November.
Sources
- Centers for Medicare and Medicaid Services, 2026 Medicare Parts A and B premiums and deductibles fact sheet
- Centers for Medicare and Medicaid Services, 2027 Part D redesign program instructions and base beneficiary premium
- 2026 Annual Report of the Boards of Trustees of the Medicare Trust Funds (projections), as reported by Kiplinger
- Medicare.gov, enrollment periods, Medigap, Medicare Savings Programs and Extra Help
2027 Part A and Part B figures are projections until CMS publishes official amounts. This article is general information, not insurance advice.
