What’s New with Medicare Part D in 2027?

Posted by Doug Hanrahan, CMP™
Estimated Reading Time 3 minutes 4 seconds

Medicare Part D prescription drug coverage will have several important changes in 2027.

The overall structure of Part D is staying largely the same, but beneficiaries may see changes to deductibles, out of pocket costs, drug prices and monthly costs.

Here are the most important changes to know.

1. The Part D Deductible Will Increase to $700

The maximum standard Medicare Part D deductible will increase from $615 in 2026 to $700 in 2027.

This does not mean every plan will charge a $700 deductible. Some plans may offer:

• A lower deductible
• No deductible
• A deductible that applies only to certain drug tiers

Always check the details of your specific plan.

2. The Annual Out of Pocket Limit Will Increase to $2,400

Medicare Part D now includes an annual limit on how much beneficiaries can pay out of pocket for covered prescription drugs.

For 2027, that limit will increase:

• 2026: $2,100
• 2027: $2,400

Once you reach the applicable out of pocket threshold, Part D medications may be covered for the rest of the calendar year.

This protection can be especially important for people who take expensive medications.

3. More Drugs Will Have Medicare Negotiated Prices

Beginning January 1, 2027, Medicare negotiated prices will take effect for 15 additional high cost Part D drugs.

Some of the medications included are:

• Ozempic, Rybelsus and Wegovy
• Trelegy Ellipta
• Xtandi
• Ibrance
• Linzess
• Xifaxan
• Vraylar
• Tradjenta
• Janumet and Janumet XR
• Otezla and Otezla XR

CMS estimates that the new negotiated prices could save Medicare Part D beneficiaries hundreds of millions of dollars in out of pocket costs.

Your actual cost will still depend on your plan, pharmacy, formulary and where you are in your Part D coverage.

4. Part D Premiums May Change

Beneficiaries should pay especially close attention to their monthly costs for 2027.

A temporary Medicare program designed to help stabilize monthly costs for stand alone Part D plans is scheduled to end after 2026.

That does not mean everyone’s monthly cost will increase. However, the cost could vary more from one plan to another.

The national Part D base beneficiary premium for 2027 is $41.33, up from $38.99 in 2026.

Keep in mind that this is not necessarily the amount you will pay. Actual monthly costs vary by plan and location.

Important Part D Protections Continue

Several important Medicare Part D protections will remain in place for 2027.

These include:

• No Part D coverage gap, commonly called the donut hole
• No cost sharing for covered Part D drugs after reaching the annual out of pocket limit
• No cost sharing for certain recommended adult vaccines
• Limits on what beneficiaries pay for covered insulin
• The Medicare Prescription Payment Plan

The Medicare Prescription Payment Plan allows you to spread prescription drug expenses throughout the year rather than paying a large amount at the pharmacy all at once.

It does not reduce the total cost of your prescriptions, but it can make those costs easier to budget.

Why You Should Review Your Part D Plan Every Year

Even if you are happy with your current plan, Medicare drug coverage can change from year to year.

Insurance companies may change:

• Monthly costs
• Deductibles
• Copayments and coinsurance
• Covered medications
• Drug tiers
• Pharmacy networks
• Prior authorization requirements

Your own prescriptions can change too.

That is why simply staying with the same plan every year may not always be the best approach.

What Should You Do Before Medicare AEP?

Before Medicare’s Annual Election Period begins, take a few simple steps:

1. Make a list of your current medications, including the name, dosage and how often you take each one.
2. Confirm that your medications are covered by the plans you are considering.
3. Check your preferred pharmacy to see whether it is in the plan’s network.
4. Review total estimated costs, not just the monthly costs.

A plan with low out of pocket costs is not necessarily the least expensive option if your medications have higher copays or are not covered.

Medicare AEP Runs From October 15 Through December 7

The Medicare Annual Election Period runs from October 15 through December 7 each year.

During AEP, beneficiaries can make changes to their Medicare Advantage and Medicare prescription drug coverage for the upcoming year. Changes generally take effect January 1.

With the Part D deductible increasing, the annual out of pocket limit changing and new negotiated drug prices taking effect, it is worth taking a few minutes to review your coverage for 2027.

If you are unsure how these changes may affect you, one of our licensed insurance agents can help you compare your options based on your medications, preferred pharmacies and individual needs.