Medicare changes for 2027: Part D, premiums and what to review before December 7
Key takeaways
- The Part D out-of-pocket cap rises to $2,400 in 2027, up from $2,100.
- The highest standard Part D deductible rises to $700, up from $615.
- A temporary program that held down standalone drug plan premiums ends, so check your plan's 2027 premium.
- Negotiated prices for 15 more drugs, including Ozempic and Wegovy, start January 1, 2027.
- You can change plans during Annual Enrollment, October 15 to December 7, 2026.
Medicare's Annual Enrollment Period runs October 15 to December 7, 2026, and changes take effect January 1, 2027. Drug coverage changes the most this year. Here's what's different and what to check before the deadline.
What's changing with Part D drug coverage in 2027?
The yearly cap on what you pay for covered drugs goes up, and so does the highest deductible a plan can charge:
| Part D | 2026 | 2027 |
|---|---|---|
| Out-of-pocket cap on covered drugs | $2,100 | $2,400 |
| Highest standard deductible | $615 | $700 |
Once your out-of-pocket costs for covered drugs reach $2,400, you pay nothing more for covered drugs for the rest of 2027. The cap applies to standalone Part D plans and to Medicare Advantage plans that include drug coverage. Many plans charge less than the highest deductible, and some have none.
Two protections stay in place: covered insulin costs no more than $35 a month, and the Medicare Prescription Payment Plan lets you spread drug costs into monthly payments instead of paying all at once at the pharmacy.
Will my Part D premium go up?
It might. A temporary federal program that held down premiums for standalone drug plans for the past two years ends for 2027. The base beneficiary premium, the national figure used to calculate penalties and subsidies, rises to $41.33 from $38.99. CMS has said most people will see premiums rise less than $10 a month, and some will pay less. Your plan's own premium can differ, so check your Annual Notice of Change.
Which drugs have negotiated prices starting in 2027?
Medicare's negotiated prices take effect January 1, 2027 for 15 more drugs:
- Ozempic, Rybelsus and Wegovy
- Trelegy Ellipta and Breo Ellipta
- Xtandi, Pomalyst, Ibrance and Calquence
- Ofev, Linzess, Xifaxan and Otezla
- Austedo and Austedo XR, Vraylar
- Tradjenta, Janumet and Janumet XR
What you pay at the pharmacy still depends on your plan's copay or coinsurance, so compare plans with your actual prescriptions.
What will Part B cost in 2027?
CMS usually announces the Part B premium and deductible each fall. As of mid-October 2026, the 2027 amounts haven't been released. The Medicare Trustees projected about $209.50 a month for the standard premium (up from $202.90) and a deductible of about $292 (up from $283). Social Security benefits rise 3.6% in 2027, and for most people that raise covers the Part B increase.
What should I review before December 7?
- Your Annual Notice of Change. Plans had to mail it by September 30. It lists changes to premiums, copays and covered drugs.
- Your prescriptions. Make sure each drug is still on the plan's drug list, at a tier you can afford.
- Your pharmacy. Preferred pharmacies can change from year to year.
- Your doctors. If you have Medicare Advantage, confirm your doctors and hospitals are still in network.
- Total cost, not just premium. A $0-premium plan can cost more if your drugs or visits cost more.
What if I miss December 7?
If you're in a Medicare Advantage plan, you can make one change from January 1 to March 31. Otherwise, you generally wait until next fall unless you qualify for a Special Enrollment Period. See Medicare enrollment periods explained, or learn about your Medicare coverage options.
Frequently asked questions
Does the $2,400 cap apply to Medicare Advantage?
Yes. It applies to Medicare Advantage plans that include drug coverage, as well as standalone Part D plans. It only counts drugs your plan covers.
Do I have to do anything if I like my plan?
No. If your plan is still offered, you stay in it automatically. Plans change their costs and drug lists every year, though, so a quick review is worth it.
Will my Ozempic or Wegovy be cheaper?
The negotiated price takes effect January 1, 2027, but your cost depends on whether your plan covers the drug and what copay it charges. Wegovy coverage for weight loss alone is limited.
Does a Medicare agent cost anything?
No. Plan premiums are the same whether you enroll on your own or with an agent.
This guide is general information, not tax or legal advice. Figures are from CMS and the Medicare Trustees as of October 2026. Rules and amounts can change; confirm details with your agent, Medicare.gov or 1-800-MEDICARE.