Medicare Part D and Medicare Advantage (Part C)

The Centers for Medicare and Medicaid Services usually releases information around Medicare Advantage, also known as Part C, and Medicare’s prescription drug plan, Part D, before Medicare’s Open Enrollment season to help consumers decide on coverage and costs.

While Original Medicare (Parts A and B) is priced at a Federal level, the other supplemental plans and Medicare Advantage plans are not. Plan prices for Medicare Part D, Medigap and Medicare Advantage are based on where you live.

Medicare Advantage (Part C)
The projected average premium for Medicare Advantage plans is $12.00 per month, which is a decrease of $2.37 compared to last year's $14.37.¹

Keep in mind that this is only a fraction of the total costs, so make sure to include additional expenses like copays and deductibles.

It’s projected that Medicare Advantage enrollment will remain steady at 34 million people this year, representing approximately 47.4% of all Medicare enrollees. In addition, Medicare Advantage plans will continue to offer a variety of supplemental benefits, including hearing, dental, and vision, which are expected to remain stable.²

As a reminder, Medicare Advantage is an all-in-one plan that provides the same coverage as Original Medicare (Parts A and B). However, Medicare Advantage also includes additional benefits such as vision, dental, hearing, prescription drugs, and lower out-of-pocket costs. Medicare Advantage does have a lot of perks compared to Original Medicare but there is one caveat; it’s far more restrictive than Original Medicare when it comes to which providers you can see. Therefore, you should see if your doctor takes the Medicare Advantage plan you’re planning to choose. Also, if your Medicare Advantage does not include a prescription drug plan, you may be eligible for Medicare Part D.

Medicare Part D (Prescription Drug Plan)

The expected average premium for Medicare Part D coverage in 2027 is $36.00 per month, which is less than $1 higher compared to last year’s $35.09.³

Medicare Part D is specifically designed to help you pay for prescription drugs. It’s a supplemental plan to Original Medicare, meaning you can choose to add Part D a la carte. Don’t be fooled that your Medicare Part D premium will cover 100% of your total prescription drug costs. You may still be responsible for other costs like annual deductibles, monthly premiums, copayment and out-of-pocket costs. 

Key Takeaways

This modest reduction in Medicare Advantage premiums might sound like good news to retirees. But keep in mind that premiums are only a part of your total annual costs. By understanding all the real costs of Medicare, it will help you budget for your retirement and navigate your new coverage. 

Here are some key financial takeaways to remember:

• The average 65-year-old couple retiring in 2026 can expect to spend an average $371,000 on healthcare throughout retirement.⁴

• Where you live impacts your total Medicare costs. 

• When building health care costs into your plan, consider not just the monthly premium but also factor in out-of-pocket expenses, deductibles and coinsurance.

SOURCES

1. “Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027.” CMS.gov, 28 September 2026, https://www.cms.gov/newsroom/press-releases/medicare-advantage-medicare-prescription-drug-programs-expected-remain-stable-2027. Accessed 28 September 2026.

2. Ibid.

3. Ibid.

4. “Fidelity Investments® Shares 25th Annual Retiree Health Care Cost Estimate, Highlighting the Importance of Incorporating Potential Health Expenses in Retirement Planning” Fidelity Investments, 21 July 2026, https://newsroom.fidelity.com/pressreleases/fidelity-investments--shares-25th-annual-retiree-health-care-cost-estimate--highlighting-the-importa/s/0dd560b4-98cb-492e-bdec-f7168f97aede. Accessed 28 September 2026.