Medicare 2027 Projections: Here's How Much Your Monthly Premiums Are Estimated to Rise
Healthcare costs are climbing again next year, but fortunately, Part B rate hikes are expected to stay well under 5%. Here is what beneficiaries need to know.
Medicare premiums are set to rise again for 2027. The latest Social Security and Medicare Trustees Report (page 207) estimates that Part B premiums will climb 3.5% in 2027, reaching $209.50 per month, up $6.60 from 2026. While another price hike is never good news for retirees, the increase is a relief compared to the almost 10% spike experienced in 2026.
Unlike Part B, Medicare Part D is sold through private insurance companies, either as a standalone drug plan alongside traditional Medicare or as part of a Medicare Advantage policy.
Because individual plan costs vary, the average premium enrollees pay is typically lower than the base beneficiary premium. According to the latest Trustees Report, the Part D base premium is projected to reach $41.33 per month in 2027.
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Medicare Part B premiums in 2027
Medicare Part B pays for doctor visits, outpatient care and some home healthcare. When enrolled, you pay both a deductible and a monthly premium. For 2027, the premium is currently projected to rise 3.5% to $209.50, up $6.60 from $202.90 in 2025.
The Part B deductible is projected to reach $292 in 2027, a $9.00 increase from $283.00 in the previous year. On a percentage basis, it's an increase of 3.2%, in line with the estimated increase of the Part B premium.
The projected Part B increase impact on Social Security benefits
The 2027 Social Security COLA is projected to rise 3.8%, after accounting for the June CPI. In terms of dollars, if implemented now, that would translate into an increase of $79.14 per month or $949.68 per year, when using the average Social Security check amount for May 2026 ($2,082.76) as the base amount.
The Social Security Administration (SSA) automatically deducts the Part B premium cost from the Social Security benefits of most Medicare recipients. For 2027, the average Social Security check would fall from $79.14 to $72.54, subtracting the projected Part B increase ($6.60) from the projected COLA raise (79.14). In that scenario, the Part B increase would consume approximately 8.3% of the monthly increase.
Understanding Medicare Part D premiums
Unlike Part B, there isn't a single "standard" Part D premium, as it varies by plan. The Centers for Medicare & Medicaid Services (CMS) establishes a standardized base premium amount used to calculate late enrollment penalties and to determine Part D IRMAA surcharges. For 2027, the base premium is $41.33.
Most final premium and deductible amounts won't be announced until late October or early November; however, most of the Part D amounts have been finalized.
Annual deductible: The standard Part D deductible will increase to $700 in 2027, up from $615 in 2026. That's a steeper increase than in 2026, when the deductible rose to $615 from $590 in 2025, a $25 increase.
Out-of-pocket spending cap: On a positive note for 2027, Medicare Part D's annual out-of-pocket prescription cap will rise to $2,400, up $300 from the $2,100 limit in 2026. Once beneficiaries reach this cap, they no longer pay out-of-pocket costs for covered prescription drugs for the rest of the year.
Premium protections and stabilization: To shield enrollees from steep rate hikes, the premium stabilization provision of the Inflation Reduction Act (IRA) caps annual base beneficiary premium (BBP) growth at 6% yearly through 2029, while limiting how much extra cost plan sponsors can pass along.
While an IRA demonstration program previously stabilized average monthly premiums, CMS scaled back that support in 2026, stating in a memo that reducing federal subsidies is meant to help the Part D program "return to operating under regular market conditions."
Full table
Below you will find the projected deductible, premiums and coinsurance amounts for Part A and Part B. The Part D amounts are final.
Cost |
2027 estimates |
2027 increases (% and $) |
2026 |
Part A deductible- day 1-60 |
$1,788 |
an increase of 3% or $52 |
$1,736 |
Inpatient co-insurance- days 61–90 |
$447 |
an increase of 3% or $13 |
$434 |
Inpatient co-insurance- days 91-150 |
$894 |
an increase of 3% or $26 |
$868 |
Skilled nursing facility |
$223.50 |
an increase of 3% or $6.50 |
$217 |
| Row 5 - Cell 0 | Row 5 - Cell 1 | Row 5 - Cell 2 | Row 5 - Cell 3 |
Part B premium |
$209.50 |
an increase of 3.5% or $6.60 |
$202.90 |
Part B deductible |
$292 |
an increase of 3.2% or $9.00 |
$283 |
| Row 8 - Cell 0 | Row 8 - Cell 1 | Row 8 - Cell 2 | Row 8 - Cell 3 |
Part D base premium |
$41.33* |
an increase of 6% or $2.34 |
$38.99 |
Part D deductible |
$700* |
an increase of 13.8% or $85 |
$615 |
Part D out-of-pocket maximum |
$2,400* |
an increase of 14.3%% or $300 |
$2,100 |
*The 2027 Part D base premium, deductible and maximum out-of-pocket limit have been finalized. These numbers are not estimates.
The value of tracking the projected premiums
Medicare open enrollment runs from October 15 to December 7 annually. During this period, you can switch from original Medicare to a Medicare Advantage plan, or vice versa. You can also choose a new Advantage plan or Medicare Part D prescription drug coverage.
To get the most from your plan, it’s important to understand your out-of-pocket costs for premiums, which will vary depending on your plan and income. For instance, you could also owe a monthly surcharge on Medicare Part B and Part D premiums based on an income-related monthly adjustment amount (IRMAA).
Your IRMAA liability for 2027 will be based on the MAGI shown on your 2025 return. While you can't do anything to change your 2025 tax return, you can look over your finances to see if you are in danger of paying the IRMAA in 2028, which will be based on your yet-to-be-filed 2026 tax return.
Income planning can go a long way in limiting your exposure to the surcharge. For instance, a well-timed Roth conversion can reduce your taxable income and eliminate required minimum distributions (RMDs).
Projections for Medicare Part B 2026 are primarily derived from the annual Medicare Trustees Report. While the final figures are usually announced by CMS in November of the preceding year (so, November 2026 for 2027 premiums), the Trustees Report provides strong estimates. The Part D base premium, deductible and out-of-pocket maximum for 2027 have been finalized and are reflected in our tables.
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