Medicare Drug Plan Deductible Limit Rises to $700 in 2027; Enrollment Ends December 7

Many people on Medicare could pay more for prescription drug coverage next year, though what you actually pay will depend on the plan you pick, the medicines you take, and any help you qualify for. The key numbers are now set. Figures from the Centers for Medicare and Medicaid Services, released earlier this year, show the standard Part D deductible limit rising to $700 in 2027, up from $615 this year, an increase of about 14 percent. The base premium used in the program's calculations climbs 6 percent to $41.33 a month, the largest increase allowed under the law. The consumer information site Low Income Relief reviewed the changes this week as the enrollment deadline nears.

The yearly cap on out-of-pocket drug spending is also moving up, from $2,100 to $2,400. The cap remains a major protection. Once your qualifying out-of-pocket spending on covered drugs reaches that limit, which can include certain payments made on your behalf, such as through the Extra Help program, you pay nothing more for covered prescriptions for the rest of the year. The $700 deductible is the most a plan may charge up front, and many plans charge less or none at all.

Part of the premium pressure comes from the end of a temporary federal program that had been holding down premiums for standalone drug plans. That cushion, called the Premium Stabilization Demonstration, expires at the end of 2026, so plans will set prices on their own next year. Rising drug costs, including expensive newer medicines, have also been pushing up coverage prices across the board.

Your actual premium depends on the plan you choose and where you live, so the base number is mostly a benchmark. It is also the figure Medicare uses to calculate late-enrollment penalties for people who delayed signing up for drug coverage. Some plans will cost less than this year, and people with limited income can get extra help that lowers or removes these costs.

The timing matters. Medicare's open enrollment runs through December 7, and the changes take effect January 1. This is the window to read your plan's Annual Notice of Change, confirm that your prescriptions are still on the plan's drug list for 2027, and compare premiums and copays against other plans in your area. Plans change their drug lists and pharmacy networks every year, so the plan that was cheapest for you in 2026 may not be cheapest in 2027. Free, unbiased help is available from your State Health Insurance Assistance Program or by calling Medicare directly.