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What Part D drug coverage will cost you in 2027

The Part D out-of-pocket cap goes from $2,100 to $2,400 in 2027 and the maximum deductible rises to $700. Here is how the stages work and what to check when comparing plans.

Updated October 23, 2026. Health Exchange Group editorial team. Figures checked against the sources listed at the end.

A pharmacist handing a prescription bag to a customer

How a year of Part D works

  1. Deductible. If your plan has one, you pay full price for covered drugs until you meet it. The maximum standard deductible is $615 in 2026 and $700 in 2027. Many plans set it lower, or skip it for cheaper drug tiers.
  2. Initial coverage. You pay copays or coinsurance, often around 25% of the cost, until your out-of-pocket spending reaches the annual cap.
  3. Catastrophic coverage. Once you hit the cap ($2,100 in 2026, $2,400 in 2027), you pay nothing for covered Part D drugs for the rest of the calendar year.

What counts toward the cap

Your deductible, copays and coinsurance for covered drugs count. Certain payments made on your behalf count too, including through Extra Help. Your monthly premium does not count, and neither does money spent on drugs your plan doesn’t cover.

The cap applies to stand-alone Part D plans and to Medicare Advantage plans with drug coverage. It is per person, per calendar year, and it resets every January 1.

Spreading costs across the year

Hitting the cap in February can mean a painful pharmacy bill all at once. The Medicare Prescription Payment Plan lets you pay your out-of-pocket drug costs in monthly installments instead. It doesn’t lower the total; it smooths it. Ask your plan about it if you take an expensive brand-name drug.

How to compare drug plans

  • Enter your exact drugs and doses into Medicare Plan Finder, or bring the bottles to your agent call
  • Check each drug’s tier and whether it needs prior authorization or step therapy
  • Check your pharmacy. Preferred pharmacies can be much cheaper in the same plan
  • Look at total yearly cost, premium plus expected drug costs, not premium alone

If your income is limited, check whether you qualify for Extra Help. It can cut premiums and copays sharply.

Sources
  1. Medicare.gov: How much does Medicare drug coverage cost?
  2. CMS: Final CY 2026 Part D Redesign Program Instructions
  3. Medicare.gov: Medicare Prescription Payment Plan

This guide is general information, not personal advice. Plan availability, costs and rules vary by state and carrier.

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