Medicare Part D is prescription drug coverage offered by private insurance companies approved by Medicare. You can get it as a stand-alone drug plan alongside Original Medicare, or as part of a Medicare Advantage plan. In 2027, no plan's deductible can be higher than $700, and once your out-of-pocket costs for covered drugs reach $2,400 you pay nothing more for covered drugs for the rest of the year.
2027 Part D costs at a glance
| Stage | What you pay in 2027 |
|---|---|
| Deductible | Up to $700 (some plans have a lower deductible or none) |
| Initial coverage | Your plan's copays or coinsurance until your covered out-of-pocket costs reach $2,400 |
| Catastrophic coverage | $0 for covered Part D drugs for the rest of the calendar year |
Your monthly premium is separate and does not count toward the $2,400 cap. Drugs your plan doesn't cover generally don't count either. If paying at the pharmacy is hard, the Medicare Prescription Payment Plan lets you spread covered drug costs into monthly payments.
Check the formulary first
Every Part D plan has a formulary — its list of covered drugs — and it differs by plan and insurance company. Plans can also set different tiers, pharmacy networks and prior-authorization rules. Bring us your medication list and we'll compare how each plan we offer treats your exact prescriptions and preferred pharmacy.
Avoid the late enrollment penalty
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 pay a late enrollment penalty added to your premium for as long as you have Part D. Enrolling when you get Medicare Parts A and B helps you avoid it.
Help paying for prescriptions
People with limited income and resources may qualify for Extra Help, a Medicare program that lowers premiums, deductibles and copays. You can also choose to have your Part D premium deducted from your monthly Social Security benefit. We can help you see whether you may qualify.
Questions about Medicare Part D
Who can enroll in Medicare Part D?
Anyone who has Medicare Part A or Part B and lives in the plan's service area can join a Part D plan.
What is the Part D out-of-pocket cap for 2027?
$2,400. After your out-of-pocket costs for covered Part D drugs reach $2,400 in 2027, you pay $0 for covered drugs for the rest of the year. Premiums do not count toward the cap.
Can I get Part D with a Medicare Advantage plan?
Yes. Many Medicare Advantage plans include Part D drug coverage. If your Medicare Advantage plan includes drug coverage, you generally can't add a separate stand-alone Part D plan.
Can I switch Part D plans every year?
Yes. You can change Part D plans during the Annual Enrollment Period from October 15 to December 7. It's a good idea to review your plan every fall because formularies and costs can change.
Disclaimer: This page has not been reviewed or endorsed by Medicare.gov or any member of the Centers for Medicare & Medicaid Services (CMS). Plan availability, benefits and costs vary by plan and county. Figures shown are 2027 Medicare program limits published by CMS.
Last reviewed: November 2026