Medicare changes for 2027: what you need to know

The Part D out-of-pocket limit increases to $2,400

In 2027, the annual Part D out-of-pocket threshold is $2,400, up from $2,100 in 2026. Once you reach that applicable $2,400 amount for covered Part D drugs, you generally pay $0 for covered Part D drugs for the rest of the calendar year. This protection matters most if you take expensive medications. The $2,400 figure is not a cap on everything you spend on prescriptions. Monthly Part D premiums generally do not count toward the threshold, and drugs your plan does not cover may not count either.

The Part D deductible increases to $700

The standard maximum Part D deductible increases to $700 in 2027, compared with $615 in 2026. That does not mean every Medicare drug plan will charge a $700 deductible. Plans can use different benefit designs. Some may have a lower deductible or apply it only to certain drug tiers. Compare more than the premium: medications, deductible, copays, coinsurance, and pharmacy all affect what you pay.

The redesigned Part D benefit continues

The major restructuring of Medicare Part D that began in 2025 remains in place. The old coverage gap — often called the “donut hole” — is no longer part of the benefit structure. For 2027 the basic progression is: deductible, then initial coverage, then catastrophic coverage. After you reach the applicable annual out-of-pocket threshold, you generally have $0 cost sharing for covered Part D drugs for the rest of the year.

More drugs will have Medicare-negotiated prices

Medicare’s Drug Price Negotiation Program continues to expand. Negotiated prices for the first group of 10 selected drugs took effect in 2026. In 2027, negotiated prices for another 15 selected Part D drugs take effect. Those medications treat a variety of serious and chronic conditions. The effect on your costs can vary. Actual costs depend on the medication, your Part D plan, the drug list, and the plan’s cost-sharing.

The Medicare Prescription Payment Plan continues

This program lets people with Medicare prescription drug coverage spread out-of-pocket drug costs over the calendar year instead of paying a large amount at the pharmacy all at once. It does not lower the cost of your prescriptions. It changes when you pay. If you need an expensive covered medication early in the year, spreading those costs may make budgeting easier.

Part D premiums may look different in 2027

The temporary Part D Premium Stabilization Demonstration ends after 2026. That does not mean every Part D premium will increase. Individual premiums depend on each plan and the annual Medicare bidding process. Read your 2027 Annual Notice of Change (ANOC) and compare drug coverage during Annual Enrollment. For 2027, the Medicare Part D base premium in Medicare’s formula is $41.33. That is not necessarily the premium you will pay. Actual premiums vary among plans.

Medicare Advantage benefits can change every year

If you have a Medicare Advantage plan, do not assume 2027 coverage will match 2026. Plans can change premiums, medical copays and coinsurance, provider networks, drug lists, drug copays, dental, vision, hearing, over-the-counter allowances, transportation, and other extra benefits. Your plan’s Annual Notice of Change explains changes that take effect January 1. Read it even if you are satisfied with the current plan.

• Monthly premiums
• Medical copayments and coinsurance
• Provider networks
• Prescription drug drug lists and copays
• Dental, vision, and hearing extras
• Over-the-counter allowances and other supplemental benefits

Some supplemental-benefit rules are changing

CMS has additional requirements for certain Medicare Advantage supplemental benefits. For example, debit cards used for those benefits will be subject to rules meant to connect purchases to eligible plan-covered products and services. Plans offering certain Special Supplemental Benefits for the Chronically Ill (SSBCI) will also have rules about making eligibility criteria public. The intent is to make it clearer what is available and who qualifies. Read what SSBCI is before you treat a postcard as a promise.

Star Ratings are changing

CMS is changing how Medicare Advantage and Part D Star Ratings are calculated, including removing some measures. Star Ratings can be one comparison tool. They should not be the only one. Your doctors, hospitals, prescriptions, pharmacies, expected care, and total estimated costs may matter more when you decide whether a particular plan fits.

2027 Part B premium is not final yet

As of September 2026, CMS has not announced the final 2027 Medicare Part B premium and deductible. The final 2027 Part A deductible and related Part A cost-sharing amounts are also still pending. You may see estimates online. Until CMS publishes the official amounts, do not treat those figures as final. Medisure Agency will update this article when the official 2027 amounts are released.

Important 2027 Part D numbers already published

These Part D parameters are already available. Individual Medicare Advantage and Part D plans can still have different premiums, copays, drug lists, and benefit designs. Confirm current figures on Medicare.gov.

• Standard maximum Part D deductible: $615 in 2026, $700 in 2027
• Annual out-of-pocket threshold: $2,100 in 2026, $2,400 in 2027
• Cost sharing after the threshold for covered Part D drugs: $0 in both years

What to check this year

Review your Medicare coverage every year. Do not look only at the premium. Check whether your doctors and hospitals remain available, whether your prescriptions are still covered, what those medications will cost, whether your preferred pharmacy remains competitive, and whether medical and extra benefits have changed. A plan that worked in 2026 may still be appropriate in 2027 — it is worth checking.

When you can change Medicare plans for 2027

The Medicare Annual Enrollment Period runs October 15 – December 7 each year. Eligible people can make certain Medicare Advantage and Part D changes for the following year. Changes generally take effect January 1, 2027. Other enrollment periods or Special Enrollment Periods may apply depending on your situation. Confirm on Medicare.gov.

Sources

This article is based primarily on official CMS materials, including the 2027 Medicare Advantage and Part D Final Rule, the 2027 Rate Announcement, Part D benefit parameters, Medicare Prescription Payment Plan guidance, and Drug Price Negotiation Program information.