New KFF analysis reveals higher prescription drug premiums, larger deductibles, and significant cost-sharing changes that could impact millions of Medicare beneficiaries.

Medicare prescription drug coverage is becoming more expensive in 2027, and insurance agents have an important opportunity to help clients navigate the changes.

According to a new KFF analysis published October 30, 2026, the average monthly premium for stand-alone Medicare Part D prescription drug plans (PDPs) could increase by 50% in 2027 if current enrollees remain in their existing plans.

The changes go beyond premiums. Higher deductibles, shifting drug formularies, and greater reliance on coinsurance mean beneficiaries could face unexpected prescription costs even when their monthly premiums appear affordable.

For independent insurance agents, the message is clear: A thorough prescription drug coverage review should be a priority during the 2027 Annual Enrollment Period (AEP).

2027 Medicare Part D: The Numbers Agents Should Know

Projected average PDP premium
$51/mo
Up from $34 in 2026

PDP enrollees facing increases
76%
Without LIS, if plans remain unchanged

2027 standard deductible
$700
Up from $615 in 2026

Large monthly premium increases
2.4M
Enrollees facing increases above $50

Source: KFF analysis of CMS Medicare plan data. Estimates generally assume current enrollees retain their plans for 2027; actual costs depend on enrollment decisions and plan benefits. KFF

1. Stand-Alone Part D Premiums Could Jump 50%

One of the biggest developments for 2027 is the projected increase in stand-alone prescription drug plan premiums.

KFF estimates the enrollment-weighted average monthly PDP premium will rise from $34 in 2026 to $51 in 2027 if beneficiaries stay with their current coverage.

That represents an additional $204 annually in premiums for the average enrollee under this scenario.

The impact will not be evenly distributed. Among PDP beneficiaries who do not receive the Part D Low-Income Subsidy (LIS):

• 76%, representing approximately 10.4 million beneficiaries, would see higher monthly premiums if they make no changes.
• 2.4 million would experience monthly premium increases exceeding $50.
• Approximately 3.9 million would pay premiums of at least $100 per month.

These projections differ from CMS's national average premium estimate, which anticipates a much smaller increase. KFF's analysis focuses on what happens if existing enrollees maintain their current plans, while actual averages may be lower as beneficiaries select less expensive coverage.

What this means for agents: Clients who were satisfied with their Part D coverage in 2026 should not automatically assume that their existing plan remains a competitive option for 2027.

2. Zero-Premium Stand-Alone Drug Plans Are Disappearing

Another important change is the elimination of zero-premium stand-alone PDP options for 2027.

KFF reports that approximately 4.1 million beneficiaries without LIS who currently have zero-premium PDPs will face a premium increase next year if they remain in their existing or successor plans.

Even among national PDPs, pricing varies significantly.

These are national enrollment-weighted averages, not premiums guaranteed in every market. Actual premiums vary by Part D region.

Agents should also consider why premiums are changing. The Part D Premium Stabilization Demonstration, which provided additional support to participating stand-alone drug plans, is ending after 2026.

The demonstration previously limited certain premium increases, but that protection will no longer apply in 2027.

What this means for agents: A plan with a low monthly premium may still expose clients to higher prescription expenses. Agents should compare total annual costs rather than focusing exclusively on the premium.

3. Part D Deductibles Are Increasing Across the Board

Premiums are only one part of the equation.

For 2027, the standard Medicare Part D deductible is increasing from $615 to $700, a 13.8% increase.

KFF also found that the share of beneficiaries enrolled in plans with a drug deductible is growing.

Nearly all PDP enrollees (99.8%) and 85% of Medicare Advantage prescription drug plan (MA-PD) enrollees will be in plans that charge a deductible in 2027, assuming current enrollment remains unchanged. Beneficiaries receiving qualifying low-income assistance may have their deductibles covered.

For agents, this reinforces the importance of reviewing both the monthly premium and the amount clients may need to pay before certain prescription benefits begin.

4. Coinsurance Could Make Prescription Costs Less Predictable

Another significant development is the growing reliance on coinsurance rather than fixed copayments.

With a copayment, beneficiaries generally pay a set dollar amount for a covered prescription. With coinsurance, their responsibility is calculated as a percentage of the drug's applicable cost.

KFF reports the following median coinsurance rates for 2027:

These percentages represent median cost-sharing arrangements among applicable plans, not universal rates.

For clients who regularly take brand-name medications, a change in coinsurance can materially affect their prescription expenses.

What this means for agents: Verify each client's medications, dosage, formulary placement, utilization management requirements, and preferred pharmacies before recommending coverage.

Agents should also explain how the annual Part D out-of-pocket limit affects covered drug spending, rather than evaluating individual prescription costs in isolation.

5. Medicare Advantage Drug Coverage Requires a Closer Look, Too

While stand-alone PDP premiums are receiving much of the attention, Medicare Advantage plans with prescription drug coverage are also experiencing changes.

KFF projects the average monthly premium attributable to Part D coverage in MA-PDs will reach approximately $9 in 2027, compared with $51 for stand-alone PDPs.

However, those figures are not directly comparable to the total cost of coverage. MA-PD premiums exclude premiums attributable to medical benefits, and Medicare Advantage and Original Medicare with a stand-alone PDP have different coverage structures.

The larger takeaway is that lower drug premiums do not necessarily translate into lower overall healthcare costs.

Agents should review the full picture, including medical coverage, provider networks, drug formularies, deductibles, and estimated annual expenses.

For additional context, explore PSM's article on 2027 Medicare Part D changes and premium pressures.

The Bigger Opportunity: Helping Clients Make Informed Decisions

The 2027 Part D changes reinforce why ongoing client service matters.

Beneficiaries who automatically renew their coverage could face higher premiums, larger deductibles, or changes in prescription costs without fully understanding their options.

For independent insurance agents, proactively reviewing coverage creates an opportunity to strengthen client relationships, improve retention, and demonstrate the value of personalized guidance.

The goal isn't simply to find a plan with a lower premium. It's to help each client understand their coverage and make an informed decision based on their prescriptions, healthcare needs, and financial priorities.

Stay Ahead of Medicare Changes With PSM Brokerage

The Medicare market continues to evolve, and staying informed is essential to serving clients effectively.

At PSM Brokerage, we support independent insurance agents with carrier access, enrollment technology, training, compliance education, and dedicated account management.

Explore our Medicare Agent Resources to access tools and guidance designed to help you navigate AEP and grow your business.

Better information leads to better client conversations. Make every annual review count.

Primary source: KFF, Medicare Part D Premiums and Cost Sharing in 2027, published October 30, 2026. All premium projections and enrollment estimates should be interpreted according to the study's assumptions.