By Qamar S, 15 years in US medical billing · Last reviewed October 11, 2026
For 2027, the yearly cap on what you pay for covered Part D drugs rises from $2,100 to $2,400, and plans can charge a drug deductible of up to $700 (up from $615). Negotiated prices also start on 15 more drugs, including Ozempic and Wegovy. The 2027 Part B premium and deductibles haven’t been announced yet; they usually come out in the fall.
What to do now: watch your mail for your plan’s Annual Notice of Change (ANOC), which arrives by September 30. Then compare plans during Open Enrollment, October 15 to December 7, 2026. Changes start January 1, 2027.
The 2027 Medicare changes at a glance
| What | 2026 | 2027 |
|---|---|---|
| Part D out-of-pocket cap | $2,100 | $2,400 |
| Part D maximum deductible | $615 | $700 |
| Drugs with negotiated prices | 10 | 25 (15 added) |
| Part B premium | $202.90 a month | Not announced yet |
| Telehealth flexibilities | Extended | Extended through December 31, 2027 |
Part D: the $2,400 cap
The out-of-pocket cap is the most you’ll pay in a year for covered Part D drugs. Once you reach it, covered drugs cost you $0 for the rest of the year. It counts what you pay: your deductible, copays and coinsurance. It doesn’t count your monthly premium or drugs your plan doesn’t cover.
The cap went up because it’s tied by law to rising drug spending. For most people, it only matters if you take expensive brand-name or specialty drugs.
The deductible can reach $700
Plans can charge up to $700 before coverage starts. Many charge less, some charge nothing, and some skip the deductible for cheaper generic drugs. Check each plan’s deductible in the Medicare Plan Finder, not just its premium, or try our Part D cost estimator.
Spreading your costs with the payment plan
If big drug costs hit early in the year, the Medicare Prescription Payment Plan lets you pay them in monthly installments across the year instead of all at the pharmacy. It doesn’t lower your total cost; it smooths it out. Ask your plan to sign you up.
15 more drugs with negotiated prices
Starting in 2027, Medicare’s negotiated prices apply to 15 more drugs, including semaglutide (Ozempic, Wegovy, Rybelsus), Trelegy Ellipta and Janumet. The first 10 negotiated drugs, such as Eliquis, Jardiance and Xarelto, started in 2026. Your actual copay still depends on your plan’s drug list and tier.
Fewer stand-alone drug plans
The number of stand-alone Part D plans keeps shrinking, and some insurers are leaving parts of the country. If you have Original Medicare with a separate drug plan, confirm your plan still exists for 2027 and still covers your drugs.
Some Medicare Advantage plans are ending
Several insurers, including Humana, are dropping some Medicare Advantage plans for 2027. If your plan is ending, you’ll get a non-renewal letter in early October. You’ll have extra time and special rights to pick new coverage. See what to do if your Medicare Advantage plan is ending.
What’s not announced yet
- The 2027 Part B premium and deductible
- The Part A deductible
- The 2027 IRMAA income brackets (the higher premiums for higher incomes)
Medicare usually announces these in the fall. We’ll update this page when they’re out.
Your 2027 checklist
- Read your Annual Notice of Change (ANOC) and look for premium, deductible, network and drug list changes.
- List every drug you take, with the dose.
- Enter your drugs in the Plan Finder at Medicare.gov and compare total yearly cost, not just the premium.
- Check that your doctors and pharmacy are in network for 2027.
- Make any change between October 15 and December 7.
From 15 years in billing: the drug list (formulary) changes every year, and a drug moving to a higher tier is the most common surprise on the first pharmacy bill in January. Check your drugs one by one, even if you plan to keep the same plan.
Free, unbiased help is available from your State Health Insurance Assistance Program (SHIP) at shiphelp.org or 1-877-839-2675. You can also call 1-800-MEDICARE.
Part B premium for 2027: what we know
CMS hasn’t announced the 2027 Part B premium yet. The 2026 Medicare Trustees Report projects about $209.50 a month, up from $202.90 in 2026, with the official number expected in November. See Medicare Part B premium 2027 for what it means for your Social Security check. Several insurers are also pulling Medicare Advantage plans out of counties; see which insurers are leaving in 2027.
Frequently asked questions
What is the Medicare Part D out-of-pocket cap for 2027?
$2,400, up from $2,100 in 2026. Once your deductible, copays and coinsurance for covered drugs reach $2,400, covered drugs cost $0 for the rest of the year. Premiums do not count toward the cap.
What is the maximum Part D deductible in 2027?
Plans can charge up to $700, up from $615 in 2026. Many plans charge less or nothing.
Has the 2027 Part B premium been announced?
Not yet. Medicare usually announces the next year’s Part B premium and deductibles in the fall. The 2026 standard Part B premium is $202.90 a month.
Which drugs get Medicare negotiated prices in 2027?
Fifteen more drugs, including semaglutide (Ozempic, Wegovy, Rybelsus), Trelegy Ellipta and Janumet. The first 10 negotiated drugs, such as Eliquis and Jardiance, started in 2026.
Sources: Medicare.gov: Drug coverage (Part D) · CMS: Medicare Drug Price Negotiation · Kiplinger: 2027 Medicare changes
This guide is educational and is not legal, financial or insurance advice. MedBillGuide is not connected to Medicare, CMS or any government agency, and we do not sell insurance. See our Disclaimer.