What Is Changing for Medicare Drug Coverage in 2027 as Open Enrollment Continues

Medicare's yearly open enrollment period is underway, and people who take prescription drugs will see several changes take effect on January 1, 2027. Open enrollment began on October 15 and runs through December 7. During this window, people can switch between traditional Medicare and privately run Medicare Advantage plans, and they can change or pick a prescription drug plan.

The biggest change for 2027 involves what you pay out of pocket for drugs under Part D. According to UnitedHealthcare's Medicare education pages, the yearly cap on out-of-pocket drug costs will rise to $2,400, up from $2,100 in 2026. Once you hit that cap, you pay nothing more for covered drugs for the rest of the year. The standard Part D deductible, the amount you pay before coverage kicks in, will also go up. UnitedHealthcare says it moves from $615 to $700.

There is another shift that could affect monthly costs. Medical Daily reports that a temporary federal program called the Part D Premium Stabilization Demonstration is ending at the close of this year. That program gave insurers extra federal support to help hold down premiums as plans adjusted to a redesigned drug benefit. With it gone, some plans may charge higher monthly premiums in 2027, so it pays to check your plan's new price before you renew.

A simple first step is to read the notice your plan mailed you this fall, often called the Annual Notice of Change. It spells out what will be different next year. If your plan is leaving your area or dropping doctors you use, you may need to pick a new one.

You can compare your current plan against others using the official plan finder at Medicare.gov, or call 1-800-MEDICARE for free help.

The changes do not happen automatically for everyone. If you do nothing, you usually stay in your current plan at its new price and terms. Taking a few minutes now to compare options could save money or prevent a surprise at the pharmacy counter in January.