In 2027, Medicare Part D continues the modifications that began in 2025, with higher limits and a few new developments. The cornerstone remains the annual cap on out-of-pocket drug costs, which rises to $2,400 for 2027. Once you reach it, you pay nothing more for covered medications for the rest of the year.
The 5% coinsurance that once applied in the catastrophic phase remains eliminated. The maximum deductible for 2027 is $700, up from $615, though many plans set it lower.
Two other changes affect what you’ll see during open enrollment. First, Medicare-negotiated prices for a second group of 15 high-cost drugs take effect on January 1, 2027. Your plan’s cost-sharing still applies, but the underlying prices are lower. Second, a temporary federal program that subsidized Part D plan premiums in 2025 and 2026 ends after 2026 and will not apply to 2027 plans, so some stand-alone plans may raise premiums more than they did last year, even though CMS projects the average will stay near $36 a month.
The Medicare Prescription Payment Plan continues to let you spread out-of-pocket costs into monthly payments rather than paying at the pharmacy.
With stand-alone drug plans continuing to consolidate, compare your options every fall rather than assuming your current plan is still the best fit.