2027 Medicare Costs: Projected Part A, Part B and Part D Changes

Important: Most of these figures are projections and have not yet been finalized by CMS.

Official source: 2026 Medicare Trustees Report (CMS)

Is Medicare enrollment around the corner for you—or are you already enrolled and trying to plan for next year?  The 2026 Medicare Trustees Report gives us an early look at what Medicare may cost in 2027.  This year’s numbers are projected to be less of a shock compared to last year’s increase.  As is usually the case, these Medicare costs don’t move in isolation.  Often, Supplement, Part D drug coverage, and Medicare Advantage out-of-pocket expenses rise too.  As a local Papillion/Omaha independent Medicare broker, we use this as a gauge to help our clients prepare for what to expect going into 2027.  Understanding these cost structures is critical to helping our clients position for 2027 and find the right coverage fit.

Projected 2027 Medicare Part B Costs

The standard Medicare Part B premium is projected to increase from $202.90 per month in 2026 to $209.50 per month in 2027. That is an increase of $6.60 per month, or $79.20 over the year.²

The annual Part B deductible is projected to rise from $283 in 2026 to $292 in 2027.  Our Medicare Supplement clients will be happy with that modest increase in the Part B deductible compared to last year’s hike. With that in mind, it is still important to keep an eye on Supplement Plan G and N rates to ensure clients are getting a good value for their premium dollar.

Projected 2027 Medicare Part A Costs

Most Medicare beneficiaries do not pay a monthly premium for Part A because they or a spouse paid Medicare payroll taxes long enough while working.  However, Part A is not free when you use it.

The inpatient hospital deductible is projected to increase from $1,736 in 2026 to $1,788 in 2027.  This deductible applies per benefit period—not simply once per calendar year.  A benefit period is defined as starting the day you are hospitalized and concluding once you are free from hospital care or skilled nursing care for 60 consecutive days.³

^{This is a very important number for our Nebraska and Iowa Medicare Advantage clients to understand.  This number is directly related to what the Advantage plans’ hospital daily copays have been in the last few years, which have been roughly 400/day for up to 5 days.  This means the Advantage plan is directly passing on a portion of the Part A hospital deductible to the beneficiaries.}  

What Is Projected for Medicare Part D?

Medicare Part D is still adjusting to the Inflation Reduction Act regulations that eliminated the “doughnut hole” and capped out-of-pocket expenses on Part D. Though more drug prices are being negotiated, annual Part D carriers are still trying to get their arms around pricing.  Many carriers have left the individual Part D market (PDP) or scaled back their plan offerings.

The Trustees project the 2027 Part D base beneficiary premium at $41.33 per month, up from $38.99 in 2026.  This is not the premium you will necessarily pay.  Part D premiums vary by plan, insurance company, county, drug list, and whether the beneficiary owes an income-related adjustment.⁴

There is one important distinction: the Trustees’ table identifies the $700 Part D deductible and the $2,400 annual out-of-pocket threshold for 2027 as already finalized.  The actual deductible on a specific plan may be lower, but it cannot exceed the federal maximum.⁴

Why Are Costs Continuing to Rise?

The Trustees expect Part B and Part D spending to grow faster than the economy over the next several years.  For Part D, the report points to higher use of GLP-1and drug price negotiations, and drug out-of-pocket caps are still not properly priced. Medicare also continues to serve a growing and aging population, which increases the number and intensity of services used.⁵

Medicare Advantage plans with Part D and stand-alone Part D plans are priced locally. While Medicare Advantage plans locally in Papillion/Omaha have a $0 premium, some are beginning to implement RX deductibles and higher copays for higher-tier drugs.  Stand-alone Part D coverage has the same from and bones across the board but often covers different medications and has different copays and deductibles.

A Word of Caution About These Numbers

Let me be clear: As an independent brokerage serving Nebraska and Iowa Medicare beneficiaries, these “projected” increased costs will have an impact.  In reality, as an independent brokerage, our goal is to help our clients reduce the impact of these costs as much as possible and have as little disruption as possible in their healthcare choices.  In plain English: these are reasonable planning numbers, but do not treat them as your final 2027 Medicare bill.⁶

What Should Medicare Beneficiaries Do?

First and foremost, talk to an independent local broker like Senior Legacy Partners.  Local presence helps Senior Legacy Partners navigate these increased cost and their impact better than some call center from who knows where.  Second, don’t assume all these costs will automatically be passed on to you.  An annual review of your Medicare coverage with Senior Legacy Partners could reveal ways to save and solidify your coverage plan for 2027.  As always, we have a zero-obligation consultation policy, so give us a call.