Medicare Part D

Part D in Russellville: $2,100 cap and three phases

RUSSELLVILLE, Ark. — If you take prescription drugs and have Medicare, 2027 continues one of the biggest Part D changes in years. There's a firm yearly cap on what you pay out of pocket, a set limit on the deductible, and just three payment phases to keep track of — the old "donut hole" is gone.

Here's a plain-English look at how Part D works in 2027, with a few notes for readers here in Russellville and the surrounding area.

The three phases of Part D in 2027

Part D used to have four phases, including the confusing coverage gap known as the donut hole. Starting in 2025, that gap was eliminated, and the same three-phase structure carries into 2027.

1. The deductible phase. You pay the full negotiated price for your drugs until you meet your plan's deductible. In 2027, no Part D plan can charge a deductible higher than $700. Some plans set a lower deductible, and some waive it for certain drug tiers.

2. The initial coverage phase. Once you meet the deductible, you and your plan share the cost. You'll pay a copay or coinsurance for each prescription, and your plan picks up the rest.

3. The catastrophic phase. Once your out-of-pocket spending on covered drugs hits the yearly cap, you pay $0 for the rest of the calendar year on covered Part D drugs.

The out-of-pocket cap in 2027

This is the headline change that continues into 2027. Your out-of-pocket spending on covered Part D prescription drugs is capped at $2,100 in 2026 and $2,400 in 2027. Once you reach that number, you're done paying for covered drugs until January.

This cap applies whether your Part D coverage comes from a stand-alone drug plan (PDP) added to Original Medicare, or from a Medicare Advantage plan that includes drug coverage (MAPD). Premiums don't count toward the cap — only what you pay for the drugs themselves.

For people who take expensive medications, this is a meaningful change. Before the cap existed, there was no yearly ceiling at all.

Spreading payments out: the Medicare Prescription Payment Plan

Hitting a large drug bill in January isn't realistic for many households. That's why Medicare offers the Medicare Prescription Payment Plan, an optional program that lets you spread your out-of-pocket drug costs across the calendar year in monthly payments.

You still owe the same total amount — this program doesn't lower your costs — but it evens out the cash flow. You sign up through your Part D plan, and you can opt in at any point during the year. If you think a big prescription bill is coming, it's worth asking your plan about it.

A note on higher-income enrollees (IRMAA)

Most people pay the standard Part D premium set by their plan. But if your income is above a certain threshold, Medicare adds a surcharge called the Income-Related Monthly Adjustment Amount, or IRMAA, to your Part D and Part B premiums.

For 2026, IRMAA kicks in for single filers with income above $109,000 (and higher thresholds for married couples filing jointly). Social Security uses your tax return from two years ago to decide. If your income has dropped since then — say, because you retired — you can ask Social Security to reconsider.

What Russellville readers should know locally

Russellville is in Pope County, and Medicare plan availability is set at the county level. That means the specific stand-alone Part D plans and Medicare Advantage plans with drug coverage offered here are the same ones available across Pope County.

The rules above — the $700 deductible ceiling in 2027, the $2,400 out-of-pocket cap in 2027, and the three-phase structure — apply to every Part D plan in the country, including every plan sold in Pope County. Where plans differ is in their monthly premiums, their formularies (the list of covered drugs), their pharmacy networks, and the copays or coinsurance they charge in the initial coverage phase. The 2027 lineup is in each plan's ANOC and on Medicare.gov's Plan Finder.

To compare what's actually offered in your ZIP code, use the Plan Finder at medicare.gov.

Key dates to keep on the calendar

• October 15 – December 7, 2026: Medicare's Annual Enrollment Period. You can join, switch, or drop a Part D plan or a Medicare Advantage plan. Coverage starts Jan. 1, 2027.
• January 1 – March 31, 2027: Medicare Advantage Open Enrollment. If you're already in a Medicare Advantage plan, you can switch to another one or go back to Original Medicare (and add a stand-alone Part D plan).

If you miss AEP and don't qualify for a Special Enrollment Period, you're generally locked into your current coverage for the year.