Quick answer: In 2027, the standard Medicare Part D deductible rises to $700 (from $615), and the yearly out-of-pocket cap on covered drugs rises to $2,400 (from $2,100). Both numbers come from the CMS 2027 Rate Announcement. Once you hit $2,400, you pay $0 for covered Part D drugs for the rest of 2027.
You can still switch drug plans until Dec. 7, 2026, for coverage that starts Jan. 1. Here is what changes, who pays more and how to keep your bill down.
Medicare Part D: 2026 vs. 2027 at a glance
| Item | 2026 | 2027 | Change |
|---|---|---|---|
| Standard deductible (maximum) | $615 | $700 | +$85 |
| Yearly out-of-pocket cap | $2,100 | $2,400 | +$300 |
| Your share after the deductible (standard plan) | 25% | 25% | No change |
| Base beneficiary premium (formula figure) | $38.99 | $41.33 | +6% |
| Premium Stabilization Demonstration | In place | Ended | Plans lose the subsidy |
The deductible and cap both went up about 13.65%. That is not a political choice. The law ties them to how fast Part D drug spending grows, and CMS rounds the results.
What the $700 deductible means for you
The deductible is what you pay before your plan starts sharing the cost. In a standard plan, you pay the full price of your drugs until you have spent $700 in 2027.
But $700 is a ceiling, not a rule. Plans may set a lower deductible, and many do. Some charge no deductible at all. Others skip the deductible for cheap generic tiers, so you pay just a copay from Jan. 1.
That is why two neighbors with the same drugs can have very different January bills. The plan design matters more than the national number.
What the $2,400 cap means for you
The out-of-pocket cap is the most important number in Part D. Once your own spending on covered drugs reaches $2,400 in 2027, you enter catastrophic coverage. From then on, you pay nothing for covered Part D drugs for the rest of the calendar year.
Before 2025, there was no hard cap. People on expensive cancer, MS or rheumatoid arthritis drugs could pay many thousands a year. The cap started at $2,000 in 2025, rose to $2,100 in 2026 and goes to $2,400 in 2027.
A few things count toward the cap, and a few do not:
- Counts: your deductible, copays and coinsurance for drugs on your plan’s list (formulary).
- Does not count: your monthly premium, drugs your plan does not cover and drugs you buy outside Part D (for example, with a discount card).
Made-up examples: who pays more in 2027?
These are made-up examples to show how the math works. Your plan’s copays and deductible will differ.
| Person | Drug costs | 2026 out of pocket | 2027 out of pocket |
|---|---|---|---|
| Linda, 2 cheap generics | About $20 a month in copays, $0-deductible plan | About $240 | About $240 |
| Robert, 1 brand-name inhaler | Hits his plan’s full deductible, then pays 25% | About $1,100 | About $1,250 |
| Maria, specialty cancer drug | Hits the cap within weeks | $2,100 | $2,400 |
The lesson: people on cheap generics barely notice the change. People with very high drug bills pay up to $300 more in 2027, but they are still protected by the cap.
Why premiums may jump at some plans
For 2024 through 2026, CMS ran a Premium Stabilization Demonstration. It paid stand-alone drug plans a subsidy, and plans that took the money agreed to limit premium increases.
In July 2026, CMS said the demonstration ends after 2026. About 25 million people are in stand-alone Part D plans, according to reporting on the CMS notice. Some of those plans have raised 2027 premiums or left certain areas.
CMS projected the average stand-alone Part D premium at about $36 a month in 2027, close to 2026. But an average hides big swings. Your own plan could go up by much more, or down.
Check your Annual Notice of Change. Plans had to mail it by Sept. 30. It lists your 2027 premium, deductible and any drugs moving tiers.
How to cut your 2027 Part D costs: 6 steps
- List every drug and dose. Include the pharmacy you use. You need this for an accurate plan search.
- Use Medicare Plan Finder. Go to Medicare.gov/plan-compare, enter your drugs and pharmacy and sort by “lowest drug + premium cost.” This shows your total yearly cost, not just the premium.
- Compare at least 3 plans. Look at the deductible, the tier of each of your drugs and whether your pharmacy is “preferred.”
- Check prior authorization and quantity limits. A cheap plan is not cheap if it will not cover your drug without a fight.
- Switch by Dec. 7. Enroll through Plan Finder or by calling 1-800-MEDICARE. Your new plan starts Jan. 1, and the old one ends on its own.
- Ask about Extra Help. If your income and savings are limited, Social Security’s Extra Help program can cut your premium, deductible and copays. Apply at SSA.gov/extrahelp.
Spread big bills out: the Medicare Prescription Payment Plan
If you expect to hit the cap early in the year, you can ask your plan to spread your drug costs over monthly payments. This is the Medicare Prescription Payment Plan, which started in 2025.
It does not lower the total you owe. It changes timing, so you are not paying $2,400 in January. There is no fee or interest. Call your plan to sign up, ideally before your first big refill.
Check with your plan about whether your 2026 enrollment carries into 2027. Rules on renewal can differ, so confirm it rather than assume.
Common mistakes to avoid
- Picking the lowest premium only. A $0 premium plan with a $700 deductible can cost more than a $40 plan with no deductible.
- Ignoring your pharmacy. The same drug can cost far more at a non-preferred pharmacy.
- Forgetting the late penalty. If you go 63 days or more without creditable drug coverage after you are first eligible, you may owe a lifelong late enrollment penalty.
- Assuming your plan still exists. If your stand-alone plan or Medicare Advantage plan is ending, you must pick a new one.
- Not rechecking each fall. Formularies and prices change every year.
What if you have Medicare Advantage?
Most Medicare Advantage plans include drug coverage (MA-PD). The same $2,400 cap applies to the drug part. The deductible rules also apply, though many MA plans set lower or no drug deductibles.
Your Medicare Advantage plan has a separate yearly limit for medical care. Do not confuse the two. The $2,400 cap is for drugs only.
Also read: Is My Medicare Advantage Plan Ending in 2027? What to Do Now
Key dates to watch
| Date | What happens |
|---|---|
| Oct. 15 – Dec. 7, 2026 | Medicare open enrollment: switch drug or Medicare Advantage plans |
| Jan. 1, 2027 | New deductible ($700 max) and cap ($2,400) take effect |
| Jan. 1 – March 31, 2027 | Medicare Advantage open enrollment: MA members can switch MA plans or go back to Original Medicare once |
| Fall 2027 | CMS sets 2028 numbers; check your new Annual Notice of Change |
FAQ
What is the Medicare Part D deductible for 2027?
The maximum standard deductible is $700 in 2027, up from $615 in 2026. Your plan may charge less or no deductible at all.
What is the Part D out-of-pocket maximum in 2027?
$2,400. After your own spending on covered drugs reaches that amount, you pay $0 for covered Part D drugs for the rest of 2027. Premiums do not count toward it.
Why did the Part D cap go up from $2,100?
The law indexes the cap and deductible to growth in Part D drug spending. For 2027, that growth rate was about 13.65%, and CMS rounded the results to $2,400 and $700.
Will my Part D premium go up in 2027?
It depends on your plan. The average is projected near $36 a month, but the end of the premium stabilization subsidy means some stand-alone plans raised premiums. Check your Annual Notice of Change and compare plans by Dec. 7.
Can I get help paying Part D costs?
Yes. Extra Help, run by Social Security, lowers premiums and copays for people with limited income and savings. You can also join the Medicare Prescription Payment Plan to spread costs over the year.
Bottom line
For most people on generic drugs, 2027 Part D looks a lot like 2026. If you take expensive brand-name or specialty drugs, plan for up to $300 more, but know you are protected at $2,400. The biggest savings come from comparing plans on Medicare Plan Finder before Dec. 7.
Last reviewed: Nov. 3, 2026. Numbers are from CMS’s 2027 announcements; plan premiums vary by plan and area.
Sources: CMS 2027 Rate Announcement (April 6, 2026), Medicare Plan Finder, SSA Extra Help, Managed Healthcare Executive (July 30, 2026), Kiplinger, Becker’s Hospital Review.
Featured image: Pharmacist at People’s Drug Store, Washington, D.C. Photo: National Photo Company / Library of Congress via Wikimedia Commons, public domain; edited by Nexgen Headlines.
