What’s Changing for Medicare Costs and Drug Coverage in 2027

Several Medicare premiums, deductibles, and out-of-pocket limits are changing in 2027. While some costs are increasing, others are expected to decrease. Let’s start with Part B, then look at what’s new for prescription drug coverage.

Part B Premium and Deductible

According to the 2026 Medicare Trustees Report, the standard Part B premium is projected to increase to $209.50 per month, up from $202.90 in 2026.¹ The annual Part B deductible is projected to rise from $283 to about $292.¹

Keep in mind that these are projections. CMS will announce the official 2027 Part B amounts later this year, so these figures could still change.

Part D Prescription Drug Coverage

We already know several important numbers for Part D prescription drug coverage in 2027:

• Out-of-pocket limit: $2,400, up from $2,100 in 2026²

• Standard deductible: $700, up from $615 in 2026²

• Base beneficiary premium: $41.33³

Don’t be fooled by that last number. The base beneficiary premium is what Medicare uses to calculate plan premiums and late enrollment penalties (LEP). It is not necessarily the amount you’ll pay each month.

What’s Happening to Stand-Alone Drug Plan Premiums

People with stand-alone Part D plans may also see changes to their monthly premiums. According to CMS, the average monthly premium is projected to increase slightly, from $35.09 in 2026 to approximately $36 in 2027.⁴

However, actual premiums will vary by plan, so it’s important to review what your specific coverage will cost next year.

Higher Deductibles and Out-of-Pocket Limits for Certain Medicare Supplement Plans

If you have a high-deductible Medicare Supplement (Medigap) Plan F, G, or J, your annual deductible will increase to $3,050 in 2027.⁵ This is the amount you must pay in covered out-of-pocket expenses before your Medigap policy begins paying benefits.

With high-deductible Plan G, what you pay toward the Medicare Part B deductible counts toward the $3,050 annual deductible, even though Plan G does not cover the Part B deductible itself.

CMS also announced that the 2027 annual out-of-pocket limits for Medicare Supplement Plans K and L will be $8,360 and $4,180, respectively.⁶

These deductible and out-of-pocket limit changes apply only to the specific Medicare Supplement plans mentioned above, not all Medigap policies.

Higher-Income Beneficiaries May Pay More

If your income is above certain limits, you may pay an additional amount for Part B and Part D known as an Income-Related Monthly Adjustment Amount, or IRMAA. Our class “IRMAA: Medicare’s Surcharge on Premiums” explains how it works.

Your 2027 IRMAA is generally based on income reported on your 2025 federal tax return.⁷ The official 2027 income brackets will be announced later this year.

If your income has since dropped because of certain life-changing events, such as retiring or reducing your work hours, getting divorced, losing a spouse, or losing certain pension income, you may be able to ask Social Security to use more recent income information. You can do this using Form SSA-44.⁸

SOURCES

1. “2026 Medicare Trustees Report.” CMS.gov, 9 June 2026, https://www.cms.gov/oact/tr/2026. Accessed 22 October 2026.

2. “How much does Medicare drug coverage cost?” Medicare.gov, https://www.medicare.gov/health-drug-plans/part-d/basics/costs. Accessed 22 October 2026.

3. “Medicare Part D 2027 National Average Monthly Bid Amount Information.” CMS.gov, 28 July 2026, https://www.cms.gov/newsroom/fact-sheets/medicare-part-d-2027-national-average-monthly-bid-amount-information. Accessed 22 October 2026.

4. “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 27 October 2026.

5. “F, G & J Deductible Announcements.” CMS.gov, October 2026, https://www.cms.gov/medicare/health-drug-plans/medigap/f-g-j-deductible-announcements. Accessed 27 October 2026.

6. “K & L Out-of-Pocket Limits Announcements.” CMS.gov, October 2026, https://www.cms.gov/medicare/health-drug-plans/medigap/k-l-out-of-pocket-limits-announcements. Accessed 27 October 2026.

7. “Medicare Premiums: Rules for Higher-Income Beneficiaries.” Social Security Administration, https://www.ssa.gov/benefits/medicare/medicare-premiums.html. Accessed 22 October 2026.

8. “Request to lower an Income-Related Monthly Adjustment Amount (IRMAA).” Social Security Administration, https://www.ssa.gov/medicare/lower-irmaa. Accessed 22 October 2026.