Will Medicare Part D Premiums Go Up in 2027? (2027)

Many Medicare Part D drug-plan premiums are expected to rise in 2027, because CMS is ending a temporary subsidy that had been holding premiums down since 2025. Without it, the national base beneficiary premium rises from $38.99 in 2026 to $41.33 in 2027, and many standalone drug plans could charge more. Parents who have Extra Help are largely shielded, because Extra Help already pays their Part D premium, so most of them keep a $0 premium.

Why are Medicare Part D premiums expected to rise in 2027?

Because CMS is ending the Part D Premium Stabilization Demonstration, a temporary subsidy that had been holding drug-plan premiums down since 2025. Without it, many standalone Part D plans are expected to charge more in 2027, and the national base beneficiary premium rises from $38.99 in 2026 to $41.33 in 2027.

The demonstration paid Part D plans a per-member subsidy, about $15 a month in 2025 and $10 in 2026, and limited how much a plan could raise its premium from one year to the next, according to KFF. CMS says plans now have enough experience under the redesigned benefit to operate without it, so it ends after 2026 and the market returns to normal conditions for 2027. Removing a subsidy that lowered premiums is why many plans are expected to cost more.

How much will a parent's Part D premium actually go up?

No one knows the exact amount yet, and it will not be the same for every plan or every person. Each plan sets its own 2027 premium, and those final prices are published in the fall before open enrollment. The one confirmed change is that the national base beneficiary premium rises about 6 percent, to $41.33 for 2027.

That base figure is capped by law: the Inflation Reduction Act limits how fast it can grow through 2029, so a runaway spike is not possible. But the base premium is only a starting point for calculations. What a parent actually pays depends on the specific plan they choose, and a large share of standalone drug-plan enrollees could see higher premiums next year. The number that matters is the one on your parent's own plan, which arrives in the fall.

Does this affect a parent who has Extra Help?

Largely no. If a parent qualifies for Extra Help, also called the Part D Low-Income Subsidy, the program already pays their Part D premium up to a regional benchmark, so most Extra Help enrollees pay a $0 premium no matter what happens to this subsidy. The people most exposed to higher premiums are those who do not have Extra Help and buy a standalone drug plan on their own.

This is the most important point for a lower-income parent. Extra Help is worth roughly $5,700 a year and includes a $0 premium, $0 deductible, and small copays, according to Social Security. Because it shields enrollees from exactly this kind of premium swing, a change like this makes it more worthwhile than ever to check whether a parent qualifies, especially since the income and savings limits are higher than most families expect. See our guide to Extra Help.

What can a caregiver do about rising Part D premiums?

Two things, both free. First, check whether the parent qualifies for Extra Help or a Medicare Savings Program, either of which can erase the premium. Second, re-shop the parent's Part D plan during open enrollment, October 15 to December 7, because the cheapest plan for their specific drugs often changes from year to year.

Re-shopping matters most in a year when premiums move. Plans change their premiums, drug lists, and pharmacy networks every January, and the Annual Notice of Change your parent receives in September spells out what is changing for their current plan. Comparing plans on Medicare.gov using the parent's actual medication list is how you find the lowest total cost, not just the lowest premium. A free counselor at 1-800-MEDICARE can do this comparison with you. Our Extra Help guide and Medicare Savings Programs guide show how to check eligibility.

Should a parent switch to a Medicare Advantage plan to avoid this?

Not as a reflex. Some Medicare Advantage plans advertise $0 drug premiums, and higher standalone Part D premiums can make them look appealing, but Advantage plans come with provider networks, prior authorization, and other trade-offs that may matter more than the premium. The right move is to compare total cost and coverage for the parent's own situation, not to switch on price alone.

MediNav sells no plan and earns no commission, so this is not a nudge in either direction. It is a caution: a lower drug premium inside an Advantage plan can come with rules that make care harder to get when a parent is seriously ill. Weigh the whole picture, including doctors, networks, and how each option handles the drugs your parent actually takes. Our caregiver's guide to Original Medicare versus Medicare Advantage walks through the trade-offs.

Does this change the Part D late enrollment penalty?

Slightly. The Part D late enrollment penalty is 1 percent of the national base beneficiary premium for each month a person went without creditable drug coverage, and that base figure rises to $41.33 for 2027. So the penalty, which lasts for life, ticks up a little as the base premium rises, one more reason not to skip Part D coverage when a parent first becomes eligible.

The penalty is calculated on the base premium, so as that figure grows, the dollar cost of the penalty grows with it, and it is added to the premium permanently, according to Medicare.gov. If a parent is newly eligible for Medicare, enrolling in a Part D plan on time, or having other creditable drug coverage, avoids the penalty entirely.