Medicare Part D 2027: Drug Coverage, Costs & the $2,400 Cap

Reviewed by Russell Noga, Licensed Medicare Insurance Broker (all 50 states) — Last updated October 1, 2026

Medicare Part D is prescription drug coverage. You can get it as a stand-alone plan alongside Original Medicare, or as part of a Medicare Advantage plan. Either way, it is sold by private insurance companies approved by Medicare.

Medicare Part D 2027 brings a higher yearly cap on what you pay for drugs, a higher deductible and a widening gap between stand-alone plan premiums and the drug coverage inside Medicare Advantage plans. Here is what changes and how to choose a plan.

Medicare Part D 2027 costs: $2,400 out-of-pocket cap, $700 maximum deductible and $35 insulin

Ready to compare 2027 plans? Choose the coverage you want to see:

Medicare Advantage

All-in-one Part C plans from private carriers. Many may include drug coverage, dental and vision, with an annual out-of-pocket limit. Uses a network.

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Medicare Supplement

Medigap plans that help pay what Original Medicare doesn't. See any doctor nationwide who accepts Medicare. Pair with a Part D plan for drugs.

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Part D Costs for 2027

Part D amount	2026	2027
Yearly out-of-pocket cap on covered drugs	$2,100	$2,400
Highest deductible a plan can charge	$615	$700
Average stand-alone Part D premium	$35.09	$36.00 (projected)
Average drug premium inside Medicare Advantage	$11.32	$7.00 (projected)
Covered insulin	$35 a month	$35 a month

The $2,400 cap is the most important protection in Part D. Once your out-of-pocket spending on covered drugs reaches it, you pay $0 for covered drugs for the rest of the year. Premiums and drugs your plan does not cover do not count toward it.

Averages hide big differences. CMS says most people without Extra Help can find a basic stand-alone plan for about $10.30 a month or less, but premiums range widely by plan and state. Some stand-alone plan premiums may rise more than average in 2027 as a temporary federal premium support program ends.

Medicare Part D 2027 coverage stages: deductible, initial coverage and catastrophic coverage after $2,400

How Part D Coverage Works in 2027

Your costs move through three stages during the year:

Deductible: you pay the full cost of your covered drugs until you meet your plan’s deductible, up to $700. Some plans have a lower deductible or none, and covered insulin and recommended vaccines are not subject to it.
Initial coverage: you pay a copay or coinsurance, usually around 25% of the cost, until your out-of-pocket spending reaches $2,400.
Catastrophic coverage: you pay nothing more for covered drugs for the rest of the calendar year.

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Stand-alone Medicare Part D plans vs drug coverage in Medicare Advantage plans 2027 compared

Stand-Alone Part D vs Drug Coverage in Medicare Advantage

If you have Original Medicare, with or without a Medicare Supplement plan, you need a stand-alone Part D plan for drug coverage. If you join a Medicare Advantage plan, drug coverage is usually built in, and joining a separate Part D plan would generally drop you from the Medicare Advantage plan.

In 2027 the drug coverage inside Medicare Advantage plans is projected to average about $7 a month, compared with about $36 for stand-alone plans. That difference is real, but it is only one part of the decision. Networks, medical costs and how you want to see doctors matter just as much.

The Medicare Prescription Payment Plan

If you have high drug costs early in the year, you can spread your out-of-pocket costs into monthly payments through your plan instead of paying large amounts at the pharmacy. It does not lower your total costs, but it can make them easier to budget. Ask your plan to sign up.

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Help Paying for Part D

The Extra Help program lowers Part D premiums, deductibles and copays for people with limited income and resources. You can apply through Social Security. People with Medicaid or certain Medicare Savings Programs qualify automatically.

The Part D Late Enrollment Penalty

DO NOT GO WITHOUT DRUG COVERAGE

If you go 63 days or more in a row without Part D or other creditable drug coverage after you first become eligible, you may owe a penalty of 1% of the national base beneficiary premium for every full month you were without coverage. It is usually added to your premium for as long as you have Part D.

How to Choose a Part D Plan for 2027

YOUR 2027 CHECKLIST

Five steps to the right drug plan

List every drug. Include the name, dose and how often you take it.

Check each plan’s drug list. Make sure your drugs are on the formulary and note any prior authorization or quantity limits.

Check your pharmacy. Preferred pharmacies can mean lower copays.

Compare total yearly cost. Use Medicare’s Plan Finder to add premiums and drug costs together, not premiums alone.

Enroll between October 15 and December 7, 2026. Coverage starts January 1, 2027.

New to Medicare? Start with our complete guide to Medicare.

Ready to compare 2027 plans? Choose the coverage you want to see:

Medicare Advantage

All-in-one Part C plans from private carriers. Many may include drug coverage, dental and vision, with an annual out-of-pocket limit. Uses a network.

Compare Medicare Advantage

Medicare Supplement

Medigap plans that help pay what Original Medicare doesn't. See any doctor nationwide who accepts Medicare. Pair with a Part D plan for drugs.

Compare Medicare Supplement

Medicare Part D 2027 FAQs

➤ What is the Medicare Part D out-of-pocket maximum for 2027?

In 2027, the most you will pay out of pocket for covered Part D drugs is $2,400, up from $2,100 in 2026. Once you reach it, you pay nothing more for covered drugs for the rest of the year. Premiums do not count toward the cap.

➤ What is the Part D deductible for 2027?

Part D plans can charge a deductible of up to $700 in 2027, up from $615 in 2026. Some plans charge less or no deductible. What you pay toward the deductible counts toward the $2,400 cap.

➤ How much does Part D cost in 2027?

CMS projects the average stand-alone Part D premium at about $36 a month in 2027, while the drug coverage built into Medicare Advantage plans averages about $7. Many people without Extra Help can find a basic stand-alone plan for about $10.30 a month or less.

➤ Is insulin still capped at $35 in 2027?

Yes. Covered insulin costs no more than $35 for a month’s supply in Part D, and you do not have to meet the deductible first.

➤ What is the Part D late enrollment penalty?

If you go 63 days or more in a row without Part D or other creditable drug coverage after you are first eligible, you may owe a penalty. It equals 1% of the national base beneficiary premium for each full month you went without coverage, and it is usually added to your premium for as long as you have Part D.

➤ Do I need Part D if I take no prescriptions?

Many people still enroll, because delaying can lead to a lifetime penalty and you cannot predict future prescriptions. A low-premium plan can protect you from the penalty and from a sudden high drug cost.

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Medicare Part D 2027: Drug Coverage, Costs & the $2,400 Cap

Part D Costs for 2027

How Part D Coverage Works in 2027

Compare Medicare plans and enroll online

Speak with a licensed insurance agent

1-866-316-7339TTY 711

Mon-Fri: 8am-9pm ET

Stand-Alone Part D vs Drug Coverage in Medicare Advantage

The Medicare Prescription Payment Plan

Compare plans and enroll online

Speak with a licensed insurance agent

1-866-316-7339TTY 711

Mon-Fri: 8am-9pm ET

Help Paying for Part D

The Part D Late Enrollment Penalty

How to Choose a Part D Plan for 2027

Medicare Part D 2027 FAQs

➤ What is the Medicare Part D out-of-pocket maximum for 2027?

➤ What is the Part D deductible for 2027?

➤ How much does Part D cost in 2027?

➤ Is insulin still capped at $35 in 2027?

➤ What is the Part D late enrollment penalty?

➤ Do I need Part D if I take no prescriptions?

Have Questions?

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Or speak with a licensed insurance agent

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