What’s Changing With Medicare Drug Plans in 2027 (and What to Do This Fall)

Estimated reading time: 4 minutes| Medicare prescription drug coverage is changing in 2027, with a higher out-of-pocket cap, an increased maximum deductible, and updates that could affect your costs. Here’s what to know and what to check this fall so you can prepare for the year ahead.

Key takeaways

• Your costs may increase: The annual out-of-pocket cap for covered Part D drugs rises to $2,400, and plans may charge a deductible of up to $700 in 2027.
• Your prescriptions matter: Premiums, covered medications, and pharmacy costs can vary by plan. Compare your total costs—not just the monthly premium.
• Lower negotiated prices aren’t your copay: Prices for 15 additional drugs take effect in 2027, but what you pay still depends on your coverage.

• Help may be available: Extra Help can lower eligible members’ drug costs, while the Medicare Prescription Payment Plan spreads costs across the year without reducing them.

• Take action this fall: Read your Annual Notice of Change and compare drug coverage during Open Enrollment, October 15–December 7.

The 2027 Part D Numbers (these are final)

As someone who helps Medicare clients here in the Sierra Foothills every day, I can tell you this is a year to take a real look at your drug plan, not just let it roll over.

Why drug plan premiums may change more this year

For 2026, Medicare ran a temporary program that helped hold down premiums on standalone drug plans. That program ends after 2026. Plan prices change every year, but for 2027 some could change more than usual. The 2027 plan details are expected on the Medicare.gov Plan Finder in early October.

15 more drugs get lower negotiated prices on January 1, 2027

Ozempic, Rybelsus and Wegovy; Trelegy Ellipta; Breo Ellipta; Xtandi; Pomalyst; Ofev; Ibrance; Linzess; Calquence; Austedo and Austedo XR; Xifaxan; Vraylar; Tradjenta; Janumet and Janumet XR; and Otezla.

These are the prices Medicare negotiated with the drug makers. They are not your copay. What you pay still depends on your plan’s drug tiers and coinsurance, which is one more reason to compare plans.

Using the Medicare Prescription Payment Plan?

This free program lets you spread your drug costs into monthly payments. If you keep the same plan for 2027, it renews automatically. If you switch plans, you’ll need to sign up again with your new plan.

If money is tight: Extra Help

With Extra Help in 2027, you pay no more than $5.80 for each generic drug and $14.40 for each brand-name

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drug, with no deductible, and a $0 premium on certain plans. Ask us to check whether you might qualify.

A word about drug discount cards

Discount cards and coupon sites can sometimes show a lower price than your plan, but what you pay with them doesn’t count toward your deductible or your $2,400 cap, and a discount card isn’t drug coverage.

What's Next?.... Your Fall To-Do List!

This article is intended for general educational purposes only and should not be considered legal, tax, or financial advice. Program eligibility, income limits, and benefits may change. To confirm whether you qualify and obtain the most current information, please contact the appropriate government agency or speak with a licensed Medicare professional.

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