Medicare Part D changes for 2027

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Last year was a big one for Medicare Part D coverage. Going into 2027, some of the costs associated with Medicare Part D are going up — and some of those increases may not be welcome news for retirees.

It’s not all disappointing news, though — some major protections are still in place.

Monthly Payment Plan is still going strong

Part D enrollees have the option to spread out their out-of-pocket costs over the year rather than face high costs in any given month. This new Medicare Prescription Payment Plan will allow beneficiaries to manage their drug expenses more evenly throughout the year. To learn more, read our Prescription Payment Plan explainer here.

Updated out-of-pocket limits

The Part D out-of-pocket limit for prescription drug expenses in 2027 will be $2,400 (up from $2,100 in 2026). This means that once a beneficiary has spent $2,400 on covered medications in a year, they will not have to pay any more for their prescriptions for the rest of that year.

Along those lines, the standard deductible is increasing from $615 in 2026 to $700 in 2027.

An early end to Medicare Part D Premium Stabilization

As part of the changes following the Inflation Reduction Act (2022), Centers for Medicare and Medicaid Services (CMS) created a temporary program to help limit increases in monthly premiums for standalone Part D plans. The program provided subsidies to insurance companies to help offset the higher costs associated with the redesigned Part D benefit and limited how much plans could increase premiums.

In July of this year, CMS announced it would end the program after 2026 — a year earlier than originally planned. The program officially ends Jan. 1, 2027.

As of this writing, it’s not yet clear how the end of the program could affect Part D premiums in 2027.

Have questions? Help is available!

With all the changes to Medicare Part D, and the fact plans can change each year, it’s natural to want to make sure you’re getting a plan that works for you and your situation. Three helpful resources could be checking out the Medicare Plan Comparison tool , calling your insurance agent or accessing free Medicare counseling through your local State Health Insurance Program .