Medicare Insurance cost is increasing in 2027

The cost of Medicare continues to escalate and is becoming less and less affordable.  

The 2027 part B premium is increasing by $6.60/month to $209.90.  It was $174.70 in 2024.

Stand alone part D insurance premiums are increasing because the federal government cut the subsidies given to the companies to inspire them to sell plans.  That's really annoying because not only are part D premiums increasing, it is causing insurance companies to withdraw offerings from the market.  In my zip code, several years ago I had a choice from about 15 plans. I just looked on medicare.gov, and I now see 6 plans being offered.

When Congress enacted prescription drug insurance in 2003, there was a huge fight over how the prescription drug insurance would be offered.  The logical thing to do would have been to offer it as another part of the federal government insurance, like parts A and B for traditional Medicare. It would mean the federal government wouldn't need to pay any subsides at all to private companies.   However, the representatives who hated that the federal government was in the Traditional Medicare insurance business said they would not vote for prescription drug insurance unless it was only offered through private insurance companies.  Of course, it meant the federal government had to subsidize private insurance companies to get them to offer the coverage, just as it does for Medicare Advantage plans. Now those zealots are chiseling away at payments given to the companies for stand alone plans which will make Traditional Medicare even less desirable.  This next thing is really lousy. They ARE NOT reducing those drug coverage subsides for companies selling Medicare Advantage plans that include prescription drug coverage.  This current action is just another way to privatize Medicare. "They" want everyone to be in Medicare Advantage plans and the federal government to stop offering national insurance. It's pathetic.

A bigger 2027 cost hit, whether you have a part D stand alone insurance plan or a Medicare Advantage plan is the part D deductible can be as high as $700.  That means, before your insurance kicks in, you will pay the full cost of your brand name drugs until you hit $700.  That number jumped up from $615 in 2026. 

The biggest 2027 hit, again for part D, whether it is stand alone or Medicare Advantage, is the part D copay cost cap will be $2,400.  That means, you pay copays for drugs until you have paid out $2,400. If  you look back to when this cost cap was implemented in 2025, set by the prior administration, the cap was $2,000.  Do the calculations.  This administration will be increasing that 2025 cap by 20%. So much for making drugs affordable for Medicare recipients. "They" who didn't want prescription drug insurance are trying to destroy prescription drug coverage.

I don't write much anymore about Medicare because there is nothing good to say.  The GLP Bridge program is a hot mess and a waste of money.  It should have been regular Rx insurance who was allowed to offer weight loss drug coverage.  The cuts from the "Big Beautiful Bill" to both Medicare and Medicaid are causing people to lose coverage and perhaps lose their lives because they cannot afford to go to a doctor.  What happened to people on ACA insurance is beyond sad.  It is unaffordable.

Fingers crossed things will change.