Medicare Part D 2027
If you have Medicare prescription drug coverage, 2027 brings important changes to review before deciding whether to keep your current plan. Your deductible and annual out-of-pocket limit may change. Your monthly premium, covered medications, and pharmacy costs could change, too. Some plans may be terminating at the end of the year, and then you MUST choose another plan. A plan that worked well in 2026 may not be the best fit for 2027. Here’s what you need to know.
2027 Medicare Part D Deductible
The Centers for Medicare & Medicaid Services (CMS) has set the maximum deductible for Medicare Part D plans at $700 for 2027, up from $615 in 2026. This is the maximum a plan can charge as its annual deductible—but not a deductible every plan must charge. Some plans have lower deductibles, and others may have no deductible for covered medications. This is mostly for Name Brand Drugs. Generics generally do not have an annual deductible.
The Annual Out-of-Pocket Limit Is Increasing
The annual out-of-pocket limit for covered Part D prescription drugs will increase from $2,100 in 2026 to $2,400 in 2027. After you reach this limit, you enter the catastrophic stage, and your medication copays go down to $0. This limit applies to qualifying out-of-pocket spending on covered Part D medications. In other words, the medication must be included in the plan formulary, the list of drugs covered by the plan, in order to count towards your maximum. If it is not covered by the plan, the expense for that medication does not count towards your maximum out-of-pocket. It also does not include your monthly premiums, and it does not mean every beneficiary will spend that amount. If you take costly medications, this change is especially important to understand when comparing your options for 2027.
Could Your Monthly Premium Increase?
Your plan's monthly premium may increase, decrease, or stay the same in 2027.
Your actual premium depends on the plan you choose. If you have a Medicare Advantage plan that includes prescription drug coverage, your drug coverage costs are generally part of the overall plan's premium structure.
Don't assume your plan will cost the same next year Review your Annual Notice of Change (ANOC) and compare the 2027 premium with other available plans.
Your Plan's Drug Formulary Could Change For 2027, a plan may change:
Which medications it covers.
The tier assigned to a medication, which can affect your copayment or coinsurance.
Prior authorization requirements.
Step therapy requirements.
Quantity limits or other coverage rules.
These changes can affect what you pay and how easily you can obtain your prescriptions. Even if your medication was covered in 2026, don't assume it will have the same coverage or cost in 2027. Check every prescription you take and make sure your preferred pharmacy is still a good option under the plan.
How to Compare Medicare Part D Plans for 2027
Before keeping your current plan or switching, review:
Monthly premium: What will you pay each month in 2027?
Deductible: Does the plan charge a deductible, and how much is it?
Prescription coverage: Are all your medications covered?
Drug costs: What will each medication cost at your preferred pharmacy?
Coverage rules: New restrictions, prior authorization requirements, other changes?
Compare your options using the Medicare Plan Finder at Medicare.gov. You can review available plans, premiums, covered medications, and estimated costs.
Don't Automatically Renew Without Reviewing Your Coverage
Medicare Part D plans can change from year to year. Taking a few minutes to compare your options during the Annual Election Period could help you avoid unexpected prescription costs or coverage problems in 2027.
Expensive medications? The Medicare Prescription Payment Plan is a voluntary program that helps you manage out-of-pocket costs for Part D covered drugs by spreading them across the calendar year (January–December) instead of paying large amounts all at once at the pharmacy. Ask your plan about the details and how to sign up if it makes sense for you.
Medicare Open Enrollment ends December 7, 2026. Review your current plan and compare your options before the deadline. Medicare.gov
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