What Medicare Could Cost You in 2027
As we begin looking ahead to 2027, one of the first questions many Medicare beneficiaries will have is:
“How much will Medicare cost me next year?”
The final 2027 Medicare Part A and Part B costs have not yet been officially announced by the Centers for Medicare & Medicaid Services (CMS).
However, current projections give us an early look at what Medicare beneficiaries may be paying in 2027.
Medicare Part B: What Could You Pay in 2027?
The standard Medicare Part B monthly premium is currently projected to be $209.50 in 2027.
For comparison:
2026 Standard Part B Premium: $202.90 per month
2027 Projected Part B Premium: $209.50 per month
Projected Increase: $6.60 per month, or approximately 3.25%
That would amount to approximately $79.20 more per year for someone paying the standard Part B premium.
The annual Part B deductible is also projected to increase from $283 in 2026 to approximately $292–$310 in 2027.
These are currently projections, not the final 2027 Part B premium and deductible. CMS is expected to announce the official 2027 Part A and Part B costs later this fall.
What Does Medicare Part B Cover?
Medicare Part B is the medical portion of Original Medicare and generally helps cover medically necessary services such as:
• Physician visits
• Outpatient medical care
• Certain preventive services
• Diagnostic testing
• Durable medical equipment
• Certain home health services
After the Part B deductible is met, Original Medicare generally pays 80% of the Medicare-approved amount for covered Part B services, and the beneficiary is generally responsible for the remaining 20%, unless they have other coverage that helps pay those costs.
Higher-Income Beneficiaries May Pay More.
Not everyone pays the standard Medicare Part B premium.
Medicare uses your Modified Adjusted Gross Income (MAGI) from your federal tax return from two years earlier to determine whether you must pay an Income-Related Monthly Adjustment Amount, commonly known as IRMAA.
For 2027, that generally means Medicare will look at your 2025 tax return.
Current projections suggest that the first 2027 IRMAA threshold could begin above approximately:
$112,000 for an individual tax return
$224,000 for a married couple filing jointly
If your income exceeds the applicable threshold, you may pay an additional amount on top of your standard Part B premium.
These 2027 IRMAA thresholds are also projected and have not yet been officially finalized.
What About Medicare Part A?
Medicare Part A primarily helps cover:
• Inpatient hospital care
• Skilled nursing facility care under qualifying circumstances
• Hospice care
• Certain home health services
Most Medicare beneficiaries receive premium-free Part A because they or their spouse worked and paid Medicare taxes for the required period.
However, premium-free does not mean that hospital care is free.
For 2027, Medicare Part A costs—including the inpatient hospital deductible, hospital coinsurance, skilled nursing facility coinsurance, and premiums for individuals who do not qualify for premium-free Part A—are expected to change.
The official 2027 Part A amounts have not yet been released.
Once CMS publishes those figures, we will have the complete picture of what Original Medicare may cost beneficiaries in 2027.
And What About Medicare Part D?
Here we already have some official 2027 information.
On July 28, 2026, CMS announced that the 2027 Part D national base beneficiary premium will be $41.33.
For comparison, the 2026 national base beneficiary premium is $38.99.
That is an increase of $2.34, or approximately 6%.
However, this does not mean that every Medicare beneficiary will pay $41.33 per month for prescription drug coverage.
The national base beneficiary premium is a figure Medicare uses as part of its Part D calculations. Actual Part D premiums vary by individual plan.
CMS has also announced that the Part D Premium Stabilization Demonstration will end after 2026, returning standalone prescription drug plans to the traditional market structure for 2027.
CMS is expected to release the finalized 2027 Medicare Advantage and Part D plan landscape in mid-to-late September, including additional information about premiums and available plans.
Why Pay Attention Now?
We are now exactly one month away from the beginning of Medicare’s Annual Enrollment Period on October 15.
This is the time of year when Medicare beneficiaries will begin receiving information about changes to their coverage for 2027.
You do not need to change your Medicare insurance simply because a new year is approaching.
However, Medicare Advantage and Part D plans can change from one year to the next—including:
• Premiums
• Copayments and other costs
• Prescription drug formularies
• Provider networks
• Medical groups
• Benefits and coverage
That is why it is important to review the information your Medicare plan sends you about your 2027 coverage, even if you are happy with the plan you currently have.
What Is Was Part D Premium Stabilization Demonstration?
The Part D Premium Stabilization Demonstration was a temporary federal program created to help stabilize premiums for participating stand-alone Medicare Part D Prescription Drug plans while insurance companies adjusted to major changes to the Part D benefit. The program provided additional federal support and temporarily limited how much participating plans could increase premiums from one year to the next.
CMS has stated that insurers now have sufficient experience operating under the redesigned Part D benefit. As a result, the temporary demonstration will end after 2026, and stand-alone Part D plans will return to the traditional program structure beginning in 2027.
Part D itself is not ending. The change is the ending of this temporary stabilization program, and it applies to stand-alone Part D Prescription Drug plans, not Medicare Advantage plans that include prescription drug coverage.
A Final Thought
Medicare costs change from year to year, and some of the final numbers for 2027 are still ahead of us.
What we know today gives us an early indication of what beneficiaries may see next year.
As CMS releases the remaining official 2027 Medicare costs and plan information, I will keep you updated.
Knowledge today can help prevent surprises tomorrow.
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