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Medicare Part D

Part D in Northport: $2,100 Cap and Three New Phases

NORTHPORT, Ala. — If you take prescription drugs and rely on Medicare, the Part D changes that reshaped the program continue into 2027. The out-of-pocket cap rises to $2,400, the coverage gap remains gone, and the year still follows just three simple phases.

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2027 DRUG LIST ALERT

Will your prescriptions still be covered in 2027?

Part D plans rewrite their drug lists every year — tiers move, pharmacies change, drugs drop off. One call checks your exact medications against the 2027 plans in your area.

  • Every prescription checked, name by name
  • Your pharmacy checked for preferred pricing

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Key takeaways

  • In 2027, no one on Part D will pay more than $2,400 out of pocket for covered prescription drugs.
  • The Part D deductible can be no higher than $700 in 2027, though some plans set it lower.
  • Part D now has three phases — deductible, initial coverage, and catastrophic — because the old "donut hole" was eliminated in 2025.
  • You can spread your yearly drug costs into monthly payments through the Medicare Prescription Payment Plan.

Here is what that looks like for people in Northport, and how to think about your drug coverage before the year begins.

The $2,100 cap is the headline change

Starting in 2027, once you spend $2,400 out of pocket on covered Part D drugs, you pay nothing for the rest of the calendar year. This cap was created by the Inflation Reduction Act and first took effect in 2025 at $2,000. It was $2,100 in 2026 and rises to $2,400 in 2027.

This is a hard ceiling. It applies whether your drugs are inexpensive generics or high-cost specialty medications, as long as they are covered by your plan's formulary.

The three phases of Part D in 2027

Since 2025, Part D has three phases instead of four. Here is how the year unfolds:

1. Deductible phase. You pay the full negotiated price of your drugs until you meet your plan's deductible. In 2027, the maximum deductible any Part D plan can charge is $700. Some plans set it lower, and some cover certain drug tiers before the deductible is met.

2. Initial coverage phase. After the deductible, you pay a copay or a percentage of the cost for each prescription, and your plan pays the rest. You stay here until your out-of-pocket spending reaches the $2,400 cap.

3. Catastrophic phase. Once you hit $2,400, you pay nothing for covered drugs for the rest of the year.

The old "coverage gap" — the donut hole that used to leave people with big bills mid-year — is no longer part of the design.

The Medicare Prescription Payment Plan

If a $2,400 pharmacy bill in January would be painful, there is a newer option worth knowing about. The Medicare Prescription Payment Plan lets you spread your out-of-pocket drug costs across the calendar year in monthly installments, instead of paying at the pharmacy counter.

It does not lower your total costs. It just smooths them out. You can opt in through your Part D plan; it is free to join.

A quick note on higher-income enrollees

Most people pay only their plan's premium for Part D. But if your income is above $109,000 as a single filer in 2026 (or the equivalent thresholds for joint filers), you will owe an extra amount called IRMAA — the Income-Related Monthly Adjustment Amount — on top of your premium. Social Security notifies you by mail if this applies.

What Northport residents should know locally

Northport sits in Tuscaloosa County, where Part D plan options are set at the county level by the Centers for Medicare & Medicaid Services. Every stand-alone Part D plan and every Medicare Advantage plan with drug coverage available to Tuscaloosa County residents follows the same 2027 rules described above — the same $700 maximum deductible, the same $2,400 cap, the same three phases. The specific 2027 lineup is listed in each plan's Annual Notice of Change and on Medicare.gov's Plan Finder.

Individual plans still differ in their premiums, formularies (the list of drugs they cover), pharmacy networks, and tier structures. Two plans with the same deductible can treat the same prescription very differently, so it pays to check each year.

Key dates to remember

By the numbers

Medicare Part B premium, 2006–2026

The standard monthly Part B premium has climbed from $88.50 in 2006 to $202.90 in 2026. Hover any point for that year’s premium.

$0$50$100$150$200200820122016202020242026

Source: CMS. Standard premium shown; in some hold-harmless years many existing enrollees paid less. Confirm at Medicare.gov.

By the numbers

How people get Medicare in Tuscaloosa County

59% are on Medicare Advantage
(MA penetration in Tuscaloosa County)
59%
41%
Medicare Advantage Medicare Supplement (Medigap) Original Medicare only
U.S. average

MA penetration from CMS enrollment data; Medigap share is an estimate. U.S. average is about 54% Medicare Advantage. These are area-level figures, not plan-specific.

Prescription coverage

How Medicare Part D works in 2027

The old coverage gap (“donut hole”) was eliminated as of 2025 (three phases now). For 2027, there’s a hard yearly cap of $2,400 on what you pay out of pocket for covered drugs, and you can spread those costs across the year with the Medicare Prescription Payment Plan.

Phase 1
Deductible
You pay full price for covered drugs until you meet your plan's deductible (no more than $615 in 2026).
Phase 2
Initial coverage
You and your plan share costs through copays or coinsurance.
Phase 3
Catastrophic coverage
Once your out-of-pocket drug spending hits $2,100, you pay nothing more for covered drugs for the rest of the year.

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Try it

How the 2026 Part D drug cap works

Slide to your estimated yearly prescription costs and see how the new $2,100 out-of-pocket cap protects you. This illustrates the standard Part D benefit; your plan may structure costs differently.

$3,000
$2,100 cap
$1,211estimated out-of-pocket
$0saved by the cap

Once your out-of-pocket spending on covered drugs reaches $2,100, you pay nothing more for the rest of 2026. Confirm details at Medicare.gov.

Explore

When can you enroll? An interactive year

JFMAMJJASOND
October 15 – December 7 — anyone with Medicare can join, switch, or drop a Medicare Advantage or Part D plan. Changes take effect January 1.

Enrollment windows are federal and the same nationwide. Confirm your personal dates at Medicare.gov or 1-800-MEDICARE.

Good to know

Frequently asked questions

Do I have to do anything to get the $2,100 cap?
No. As long as you are enrolled in a Medicare Part D plan (either stand-alone or built into a Medicare Advantage plan), the cap applies automatically. Your plan tracks your spending and moves you into the catastrophic phase once you hit the limit in 2027.
What counts toward the $2,400 out-of-pocket limit?
Your deductible, copays, and coinsurance for covered Part D drugs all count. Premiums do not count. Drugs that your plan does not cover — and drugs you buy fully out of pocket — generally do not count either.
Is the deductible always $615?
No. $700 is the maximum a Part D plan can charge in 2027. Plans can set their deductible lower, and some waive it entirely for certain drug tiers. Check each plan's Summary of Benefits.
Where can I get help comparing Part D options in Tuscaloosa County?
Use the Plan Finder at medicare.gov to compare plans based on your specific medications and preferred pharmacies. You can also call 1-800-MEDICARE (1-800-633-4227), which is open 24/7, or contact Alabama's State Health Insurance Assistance Program (SHIP), which offers free one-on-one counseling. ## Where to go next For personalized answers, the most reliable starting points are official ones: medicare.gov, 1-800-MEDICARE, and your local SHIP counselor. Bring a current list of your prescriptions when you compare plans — that one step makes the difference between an educated guess and a real answer.
Sources & further reading
  • CMS — Medicare Part D program rules (medicare.gov)

For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.

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This page was last updated: October 6, 2026.

Part D drug lists change for 2027 — check your prescriptionsCall