In 2027, Medicare Part D out-of-pocket drug costs are capped at $2,400. After you reach that cap, you pay $0 copay for covered Part D drugs for the rest of the calendar year.
What the cap does not mean
The cap is not a limit on your total Medicare spending. It does not cap plan premiums, medical services, or drugs that are not covered by your Part D plan.
Your costs before reaching the cap still depend on your plan’s deductible, copayments, coinsurance, formulary, and pharmacy rules. Some payments made on your behalf, such as through Extra Help, can count toward the cap under program rules.
What to check in a 2027 plan
A higher cap does not tell you whether a plan is a good fit. Review:
- Whether your prescriptions are on the plan’s formulary
- Prior authorization, step therapy, and quantity limits
- Your deductible and cost at the pharmacy
- Preferred pharmacy and mail-order options
Use your current medication list and preferred pharmacies when comparing plans. The official Medicare Plan Finder can show plan-specific costs and coverage.
For the broader enrollment window and review process, read our Medicare Annual Enrollment guide. A licensed Enroll America agent can also review your options in English or Spanish.
Official sources
Sources reviewed October 25, 2026:
- CMS: 2027 Open Enrollment guidance and the $2,400 Part D cap
- CMS: 2027 Medicare Advantage and Part D Rate Announcement
- Medicare.gov: compare health and drug plans
Enroll America Inc is an independent licensed health insurance agency and is not affiliated with Medicare or a government agency. We do not offer every plan available in your area.