From Kiplinger · · 2m
Medicare Part D 2027 Changes
Medicare Part D plans shift in 2027 with new rules, costs, and coverage gaps.
In brief
Medicare Part D plans shift in 2027 with new rules, costs, and coverage gaps. Medicare Part D enrollees face 2027 changes including higher deductibles, no spousal discounts, and end of premium subsidies. Originally reported by Kiplinger.
Medicare Part D isn't one-and-done
Enrolling in Medicare Part D isn't a one-and-done decision. Leaving your plan on autopilot during open enrollment could cost hundreds in unexpected premiums and out-of-pocket fees.
2027 plan costs vary widely
The cheapest plan by monthly premium is rarely the most cost-effective option overall. Always sort plans by lowest drug plus premium cost to see true out-of-pocket costs.
Formularies change yearly
Your insurer's formulary and tier structures likely change yearly. Generic, preferred brand, or non-preferred brand drugs affect your costs significantly.
2027 deductible limit
For 2027, the federally mandated maximum deductible a Part D plan can charge is $700, $85 more than 2026's $615.
Donut hole eliminated
The infamous coverage gap or 'donut hole' was officially eliminated as of January 1, 2025. The 2027 out-of-pocket cap is $2,400, a $300 increase over 2026's $2,100.
No spousal discounts
Most spouses don't take the same medications. One plan may cover your drugs better while another covers your spouse's needs.
Medicare prescription payment plan
You can opt into the Medicare prescription payment plan to spread drug costs into capped monthly installments instead of paying a large sum at the pharmacy.
Fewer stand-alone plans
The number of stand-alone plans decreased from 30 in 2021 to 11 in 2026, a 22% drop over five years, according to KFF.
Premium subsidies end in 2027
The IRA premium stabilization demonstration ends in 2027, ending federal premium subsidies that helped keep monthly premiums stable in 2025 and 2026.
Avoid late enrollment penalty
If you don't enroll in Part D when first eligible and go 63+ days without 'creditable' drug coverage, you face a permanent late enrollment penalty.
2027 out-of-pocket cap
For 2027, the out-of-pocket cap is $2,400, after which copays and coinsurance drop to $0.
At a glance
Medicare Part D enrollees face 2027 changes including higher deductibles, no spousal discounts, and end of premium subsidies.
