Drug prices & Part D
Medicare's 2027 Part D Base Beneficiary Premium Will Be 41 Dollars and 33 Cents, Hitting the Inflation Reduction Act's Annual Cap
CMS set the 2027 Part D base beneficiary premium at 41 dollars and 33 cents in July, representing a 6 percent rise from the prior year and the maximum the IRA allows, a benchmark that shapes what drug plans charge as open enrollment approaches.
By the Goodsurance editorial teamSeptember 19, 2026
The Centers for Medicare and Medicaid Services set the 2027 Medicare Part D base beneficiary premium at 41 dollars and 33 cents, announced July 28. The figure represents a 6 percent increase from the prior year, which is the maximum annual increase the Inflation Reduction Act permits between 2024 and 2029 under its premium stabilization provision.
The base beneficiary premium is a national benchmark CMS calculates each year from Part D plan bids. It does not directly determine what any individual enrollee pays, but it shapes how plan sponsors price their 2027 products and how CMS calculates the benchmark premiums used to determine subsidies for low-income enrollees.
Medicare's 2027 drug plan base premium hits 41 dollars and 33 cents, the maximum allowed under the Inflation Reduction Act, weeks before open enrollment opens.
Reaching the IRA's 6 percent ceiling in 2027 is notable in context. The IRA mechanism was designed to limit year-over-year volatility in Part D costs, but it does not prevent any individual plan's premium from rising by a different amount if the plan's bids diverge from the national benchmark.
The 2027 announcement also came alongside the news that the Part D Premium Stabilization Demonstration, a temporary federal subsidy that cushioned standalone prescription drug plan premiums in 2025 and 2026 beyond the IRA's existing protections, will not continue. The demonstration reduced the base beneficiary premium and capped year-over-year increases for participating plans. Without it, the IRA's 6 percent cap becomes the primary protection against rapid premium growth for standalone Part D enrollees.
Final plan-specific premiums for 2027 are expected to be published by CMS in late September, just ahead of the October 15 open enrollment start.
In plain words
Medicare sets a number each year that helps decide what drug plans charge. For 2027, that number is 41 dollars and 33 cents per month. This is called the base beneficiary premium.
A law called the Inflation Reduction Act says this number can only go up by 6 percent per year. The 2027 number is right at that limit.
This number does not mean everyone pays 41 dollars and 33 cents. Each drug plan sets its own premium. But this number helps set the starting point.
Also, a temporary program that helped keep drug plan premiums lower in 2025 and 2026 is ending. So some people may see bigger changes in what their drug plan charges for 2027.
The full list of 2027 plan prices is expected to be published in late September, just before open enrollment begins on October 15.
Understand the basics first
Source: CMS
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