Medicare Advantage 2027: What to Expect

The 2027 Medicare Advantage plan year is shaping up to be relatively stable overall, but that does not mean beneficiaries should automatically stay with their current plan. CMS and the insurers have made a number of changes that could affect premiums, benefits, networks, drug coverage and out-of-pocket costs. It's recommended by CMS to review your coverages each year during the AEP. Feel free to reach out to Dan Anderson, as a Certified Medicare Insurance Planner™, you can feel confident you will get great advice, and find a plan that meets your needs.

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1. Medicare Advantage premiums are expected to remain competitive

CMS projects the average Medicare Advantage premium to decrease from $14.37 per month in 2026 to approximately $12.00 in 2027, including plans with prescription drug coverage and Special Needs Plans. CMS also expects the average Part D premium component of MA plans to fall from $11.32 to about $7 per month. Centers for Medicare & Medicaid Services

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However, averages can be misleading at the individual level. Premiums and benefits can vary substantially by county, carrier and plan. A $0-premium plan can also have higher copays, deductibles or other cost-sharing requirements.

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2. Plan availability remains broad—but some plans are changing

CMS expects approximately 5,532 Medicare Advantage plans nationally in 2027, compared with 5,553 in 2026. More than 99% of Medicare beneficiaries are expected to have access to at least one MA plan, and 97% are expected to have access to at least 10 plans. Centers for Medicare & Medicaid Services

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At the same time, KFF's analysis finds that the average beneficiary will have access to 28 MA-PD plans in 2027, down from 32 in 2026. KFF

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So, while the overall market is stable, individual counties may experience meaningful changes in which carriers and plans are available.

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3. Extra benefits remain important—but don't assume they're identical

Dental, vision and hearing benefits are expected to remain broadly available. CMS says supplemental benefit offerings are expected to remain relatively stable in 2027. Centers for Medicare & Medicaid Services

However, the amount and conditions attached to those benefits can change.

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This is particularly important for benefits such as:

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• Dental allowances

• OTC benefits

• Transportation

• Grocery/healthy food benefits

• Flex cards

• Hearing benefits

• Vision allowances

• Utility or other special supplemental benefits

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CMS is also requiring Medicare Advantage organizations to make their eligibility criteria for certain Special Supplemental Benefits for the Chronically Ill (SSBCI) publicly available, making it easier to determine who actually qualifies for those benefits. Centers for Medicare & Medicaid Services

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4. Drug coverage deserves a careful review

The Part D benefit continues to evolve following the Inflation Reduction Act. CMS is formally incorporating several of those changes into the 2027 regulations, including the elimination of the coverage-gap phase and the continued structure of the new catastrophic benefit. Centers for Medicare & Medicaid Services

For 2027, CMS projects the average premium for standalone Part D plans to be approximately $36 per month, less than $1 higher than the 2026 average. Centers for Medicare & Medicaid Services

For Medicare Advantage plans that include Part D, CMS projects the average drug premium component to decline.

But the most important issue for an individual beneficiary is not the average premium—it is whether their specific prescriptions remain covered, at what tier, and at what cost.

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5. Networks and prior authorization remain critical

Beneficiaries should pay particular attention to doctors, hospitals and specialists when comparing 2027 plans.

Prior authorization continues to be an important feature of Medicare Advantage. In 2026, 99% of MA enrollees were in plans requiring prior authorization for at least some services. KFF

For 2027, consumers should therefore look beyond the premium and benefit headline and ask:

"Can I continue seeing the doctors and hospitals I actually use, and what hoops will I have to go through to receive care?"

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6. Star Ratings are changing

CMS is modifying the Medicare Advantage Star Ratings methodology for 2027. Among other changes, CMS is removing 11 measures that it believes provide little meaningful distinction between plans and adding a new depression-screening/follow-up measure for future Star Ratings. Centers for Medicare & Medicaid Services

That means Star Ratings remain useful, but consumers should look at the underlying plan details rather than relying on the star number alone.

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The Bottom Line for 2027

The overall Medicare Advantage market appears relatively stable, with CMS projecting lower average premiums and continued broad plan availability. But "stable" doesn't mean your current plan will remain the best fit—or even remain available with the same benefits.

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For the 2027 Annual Enrollment Period, I would recommend reviewing five things before simply renewing a current plan:

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1. Doctors & hospitals — Are your preferred providers still in-network?

2. Prescription drugs — Are your medications covered and at what cost?

3. Maximum out-of-pocket — What is your potential exposure if you become seriously ill?

4. Benefits — What changed with dental, vision, hearing, OTC, transportation and other extras?

5. Copays & utilization rules — What will you actually pay when you use the plan?

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The 2027 Medicare Advantage Annual Enrollment Period runs October 15 through December 7, 2026, with changes generally taking effect January 1, 2027. Centers for Medicare & Medicaid Services

For beneficiaries, the key message is simple: don't compare Medicare Advantage plans based solely on the premium or the extra benefits advertised on the front page. Compare the entire plan based on how you actually use healthcare.