2027 Medicare Advantage Plan Availability and Trends Analysis
- Medicare beneficiaries will have access to an average of 28 Medicare Advantage prescription drug plan options in 2027, according to an analysis published by KFF, marking a decline...
- The number of available prescription drug plan options peaked at 36 for the average beneficiary in 2024.
- Contrasting with the reduction in plan choices, federal projections point toward reduced costs for consumers.
Medicare beneficiaries will have access to an average of 28 Medicare Advantage prescription drug plan options in 2027, according to an analysis published by KFF, marking a decline from the 32 choices available in 2026. The Centers for Medicare and Medicaid Services announced information regarding the upcoming plan year, revealing shifts in plan availability and a projected drop in average monthly premiums across the marketplace.
Plan Availability Declines Across Most States
The number of available prescription drug plan options peaked at 36 for the average beneficiary in 2024. Across all Medicare Advantage plans for general enrollment, including those with and without drug coverage, the average beneficiary can choose from 35 plans in 2027, down from 39 in 2026, KFF reported. Despite these drops, availability remains higher than levels recorded between 2010 and 2021.
Plan counts vary significantly by geography. In 26 states and Puerto Rico, the average beneficiary has at least 20 options, while Pennsylvania, Michigan, and Ohio average at least 40 options. Conversely, nine states and the District of Columbia offer fewer than 10 choices. Alaska maintains zero available plans for general enrollment.
Federal Projections Show Lower Premiums for 2027
Contrasting with the reduction in plan choices, federal projections point toward reduced costs for consumers. The Centers for Medicare and Medicaid Services stated that average monthly premiums across all Medicare Advantage plans will drop by more than 16 percent, falling from more than $14 in 2026 to $12 in 2027.
For standalone Medicare Part D prescription drug plans, the average premium will increase by less than $1 to reach $36 per month in 2027, according to federal figures. This modest rise occurs despite the expiration of temporary federal subsidies that had been paid to insurers since 2024. The Centers for Medicare and Medicaid Services noted that insurers have gained sufficient market experience, eliminating the need for those subsidies.
CMS Administrator Dr. Mehmet Oz addressed the financial adjustments in a statement. By slashing handouts to big insurance companies, Centers for Medicare and Medicaid Services is keeping premiums stable,
Dr. Mehmet Oz said.
Open Enrollment Period Approaches for Beneficiaries
The annual open enrollment period runs from October 15 through December 7, allowing beneficiaries to alter their coverage for the upcoming year. Marketing for these plans by insurers and brokers starts October 1. Because plan offerings, provider networks, drug formularies, and cost-sharing rules change annually, officials advise careful review. We urge beneficiaries to use Open Enrollment as an opportunity to review their coverage, compare options, and pick the plan that best suits their needs and budget,
Dr. Mehmet Oz stated.
Beneficiaries whose specific plans have exited the market may be automatically transitioned into a similar plan offered by the same insurer in the same county, depending on contract terms. Others must select new coverage actively or revert to traditional Medicare.