Will Your 2027 Part D Out-of-Pocket Cap Go Up to $2,400?

On January 1, 2027, the most you can pay out of pocket for covered Part D drugs rises by $300, from $2,100 to $2,400, and the maximum deductible rises from $615 to $700. Medicare updates both numbers by formula every year, so neither is a surprise, but both land just as Annual Enrollment opens on October 15. This guide explains what the new numbers do, what they do not do, why your premium may matter more than the cap for 2027, and what to check before the December 7 deadline. Everything here is current as of October 8, 2026.

What Is the 2027 Part D Out-of-Pocket Cap?

Medicare.gov lists the figures side by side. No Medicare drug plan may have a deductible of more than $615 in 2026 or more than $700 in 2027, and the out-of-pocket threshold is $2,100 in 2026 and $2,400 in 2027. That is an increase of $300, about 14 percent, in the cap and $85, also about 14 percent, in the maximum deductible. CMS's 2027 announcement says both are updated by multiplying the 2026 amounts by the 2027 annual percentage increase.

Deductibles, copayments and coinsurance on covered drugs count toward the cap, along with certain payments made on your behalf, such as through Extra Help, according to Medicare.gov. Once you reach it, you pay nothing more for covered Part D drugs for the rest of the calendar year. Our guide to the 2026 $2,100 cap explains how the mechanics work.

Why Could Your Premium Matter More Than the Cap?

Premiums sit outside the cap. Medicare.gov says you pay a monthly premium whether or not you use your drugs, separately from the deductible, copayments and coinsurance that count toward it. For 2027, CMS set the Part D base beneficiary premium at $41.33, up from $38.99 in 2026, in its July 28, 2026 announcement. The $2.34 a month increase is the difference between the two announced figures. The same announcement says CMS will discontinue the premium stabilization demonstration at the end of 2026 to return Part D to traditional market conditions in 2027.

That matters, but the base premium is a benchmark, not your bill. In its September 28, 2026 announcement, CMS projected that the average standalone Part D premium would rise by less than $1 a month, from $35.09 in 2026 to $36 in 2027. KFF's October 2 analysis found modest increases for many enrollees, but much larger ones for others if they keep their current plan, including $50 or more a month in United's AARP Medicare Rx Preferred plan. Your own plan's 2027 premium can be higher or lower than the average, and it appears in your plan's Annual Notice of Change.

Who Actually Pays the Extra $300?

Only people whose covered drug costs reach the cap. If your out-of-pocket drug costs stay below $2,100 in 2026 and below $2,400 in 2027, the cap itself changes nothing you pay. Your plan's deductible, copays and pharmacy network do. For someone on a high-cost specialty medication, the picture is different: the most you can owe on covered drugs for the year is now $2,400, up to $300 more than the 2026 maximum.

The Medicare Prescription Payment Plan changes timing, not the total. Medicare.gov says it doesn't save you money or lower your drug costs, and that it spreads your out-of-pocket costs across the calendar year. If you opted in for the full year, a $2,400 cap spread evenly over 12 months works out to $200 a month. Your plan's actual schedule depends on when you join, so ask your plan before relying on that figure.

What Should You Check Before December 7?

Annual Enrollment runs October 15 through December 7, and coverage begins January 1, 2027. Compare three things on every plan you consider: the 2027 premium, the deductible, which cannot exceed $700, and whether your drugs and your pharmacy are covered. Medicare.gov's Plan Finder lets you compare them side by side. If you already have a plan, open its Annual Notice of Change, which plans were required to send by September 30.

For the rest of what is changing, start with our 2027 Medicare guide, then read about Part B premiums and the 2027 COLA and our overview of 2027 Part D changes. For drug prices, see our guide to the 2027 negotiated drug prices.