Search
Medicare

Medicare Part D in 2027: The $2,400 Cap, the $700 Deductible, and What to Do Before December 7

Colorful pills spilling from an orange prescription bottle on a blue background, with a sticky note reading “+$300?”.
Photo by Towfiqu barbhuiya on Unsplash

In 2027, the most a Medicare drug plan can charge as a deductible rises to $700. The yearly cap on what you pay out of pocket for covered drugs goes up too, to $2,400. Neither change needs your signature. Do nothing this fall and your plan renews on its new terms, so the first sign may be a pharmacy receipt in January. What it does to your bill depends on your plan, and the window to check closes December 7.

See the 7-step October plan checkup

Continues on the next page · opens in a new tab

By Margaret Linwood · Updated Sep 29, 2026 · Reviewed against CMS, Medicare.gov, KFF

Also worth reading

A red envelope on a yellow background, with a sticky note reading “Plan G +26%?”. Medicare Your Plan G premium jumped again. Check your state's switching window A blank sheet of paper and a pen on a kitchen counter, with a sticky note reading “$75?”. Medicare Your 2027 raise is 3.6%. See what Part B leaves

Plenty of people skip the comparison. In one recent open enrollment, 69% of people in stand-alone drug plans didn't compare their plan's drug coverage with any other plan (that's KFF's count). Among people getting their drugs through Medicare Advantage, the share was higher still.

A third change has had far less attention. For two years, drug plan insurers got extra money to hold stand-alone premiums down, and that help ends December 31, 2026. There are fewer stand-alone plans to pick from, too, and if yours is being folded into another one, the plan's yearly notice of changes will say so.

See what the premium sticker hides

Continues on the next page · opens in a new tab

Four Part D rules that get missed in the fall

The new limits are the same in every plan. A few other rules can make them easier to live with, or cost you if they slip past.

  1. Monthly installments. The Medicare Prescription Payment Plan spreads your out-of-pocket drug costs into monthly bills instead of charging them all at once at the counter. There's no fee and no interest, and you sign up through your drug plan.
  2. When to sign up for it. You can join before January 1 or any time during the year. It helps most if you sign up early, and it does little when your costs are small and steady.
  3. Extra Help. If your income is limited, this program pays the premium for basic plans priced at or below a regional limit and wipes out the deductible. You apply through Social Security, and people who already get Medicaid or Supplemental Security Income qualify automatically.
  4. Going without coverage. Drop drug coverage for 63 days or more and you'll owe a late enrollment penalty when you come back. It's 1% of the national base premium for every month you went without, for as long as you have Part D.

None of these change what the new numbers do to your yearly total. The article runs that math for three drug budgets, from a few generics to a specialty drug.

See the 2027 math for 3 drug budgets

Continues on the next page · opens in a new tab

Also on this topic

A blank sheet on a black clipboard with a yellow pencil on a wooden desk, with a sticky note reading “7 checks?”. Medicare Your Medicare plan can change January 1. Seven checks, in order A stack of U.S. quarters on a white surface, with a sticky note reading “$202.90 a month?”. Medicare Your state may pay your Part B premium. Check one income line A dirt path splitting in two through a green forest, with a sticky note reading “Hard to undo?”. Medicare You can leave Medigap any fall. Coming back is a different story A desk calendar showing December 30 and 31 with an orange highlighter, with a sticky note reading “Ends Dec. 31?”. Medicare If your Medicare Advantage plan ends, you get a 63-day Medigap right A brown envelope lying on a white envelope on a wooden table, with a sticky note reading “5 lines?”. Medicare Your plan's September letter has five lines that set your 2027 costs Papers and envelopes spread on a wooden table, with a sticky note reading “2024 return?”. Medicare Your 2026 Medicare premium was set by your 2024 tax return

Up next on this topic

Picked to go with this article. Each one opens in a new tab.

An hourglass against a textured gray wall, with a sticky note reading “For life?”. Medicare COBRA does not count as employer coverage when you turn 65 Blank white tags on a pink background, with a sticky note reading “Covered abroad?”. Medicare Your Medigap plan pays 80% abroad, up to a $50,000 lifetime cap An empty hospital bed under a wall of medical equipment, with a sticky note reading “Admitted?”. Medicare Your parent was "under observation," not admitted. That changes who pays rehab Two steaming mugs on a small wooden table, with a sticky note reading “Covered at 62?”. Insurance Your spouse goes on Medicare. You're 62. Where your coverage comes from An older couple seen from behind on a bench overlooking the water, with a sticky note reading “$1,080 short?”. Retirement At 62 your Social Security check is 30% smaller, for life Two people in silhouette sitting under a tree at sunset, with a sticky note reading “25% if missed”. Retirement Your first IRA withdrawal deadline is April 1, and it has a catch A pen and a teal calculator on a white desk, with a sticky note reading “Under $75,000?”. Taxes Your Social Security is still taxable. The new $6,000 deduction explains why An older person's folded hands resting on blue fabric, with a sticky note reading “Pay more?”. Insurance Your long-term care premium went up. Compare the options in the letter A padlock and a folded dollar bill on a keyboard, with a sticky note reading “Can they take it?”. Debt & Credit A collector can't take your Social Security. The IRS sometimes can A pink piggy bank on a white background, with a sticky note reading “$625 a month?”. Retirement What $100,000 buys you in monthly income at 65: about $625 An insurance policy document under a magnifying glass, with a sticky note reading “No medical exam?”. Insurance The same term life policy costs double at 65 versus 55 A printed last will and testament, with a sticky note reading “$26,000?”. Retirement Your will still goes through probate court. A living trust doesn't