Medicare Part D
Greenwich Part D 2027: $2,400 Out-of-Pocket Cap
GREENWICH, Conn. — Starting January 1, 2027, the way you pay for prescription drugs under Medicare shifts again. The out-of-pocket ceiling for Part D drugs rises to $2,400, and once you hit it, you pay nothing more for covered prescriptions for the rest of the calendar year. For anyone in Greenwich juggling several medications, that's a meaningful shift worth understanding before Annual Enrollment closes on December 7.
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Key takeaways
- Starting January 1, 2027, Medicare caps what you pay out-of-pocket for Part D drugs at $2,400 a year, and after that your plan covers 100% of covered drug costs through December 31.
- Part D still has three phases instead of four, since the old coverage gap, or "donut hole," was eliminated in 2025 and remains gone in 2027.
- The optional Medicare Prescription Payment Plan (M3P) lets you spread your drug costs into monthly payments over the year instead of paying it all at the pharmacy, and you can join before the year starts or anytime during it.
- Annual Enrollment runs October 15 through December 7, so it's a good time to review your Annual Notice of Change and think about whether income changes could affect your IRMAA surcharge (CMS publishes the 2027 IRMAA brackets later in the fall).
Here's a plain-English guide to what's changing, what stayed the same, and where to get personalized help.
The Part D cap, explained
In 2027, Medicare limits what you personally spend on covered Part D drugs to $2,400 for the year. That number applies to your deductible and your share of drug costs at the pharmacy counter. Once you reach it, your Part D plan pays 100% of the cost of covered drugs through December 31.
The cap resets each January. It applies whether your drug coverage comes through a stand-alone Part D plan or is built into a Medicare Advantage plan that includes drug coverage.
This is a big change from just a few years back, when there was no annual limit at all on Part D spending.
The "donut hole" is gone
If you've been on Medicare for a while, you probably remember the coverage gap — the so-called "donut hole" — where costs jumped in the middle of the year after you hit a certain spending threshold. That phase was eliminated in 2025 and remains gone in 2027.
Part D now has three phases instead of four:
1. Deductible phase — you pay full negotiated price until you meet the plan's deductible (no more than $700 in 2027). 2. Initial coverage phase — you pay a copay or coinsurance for each prescription. 3. Catastrophic phase — once your out-of-pocket costs reach $2,400, you pay $0 for covered drugs the rest of the year.
Simpler math, fewer surprises.
The Medicare Prescription Payment Plan
Even with the cap, a single expensive prescription in January can feel like a punch. That's where the Medicare Prescription Payment Plan — sometimes called "M3P" — comes in.
It's an optional program, free to join, that lets you spread your out-of-pocket drug costs across the calendar year in monthly installments instead of paying the full amount at the pharmacy. You still owe the same total, but the timing is smoother.
A few things to know:
- You opt in through your Part D or Medicare Advantage drug plan, not through Medicare directly.
- Your monthly bill comes from the plan, not the pharmacy.
- If you don't take costly drugs, this program may not help you and could add a bill to track. It tends to help most when a large expense hits early in the year.
You can sign up before the plan year starts or at any point during the year.
What this means in Fairfield County
Greenwich is in Fairfield County, where residents choose among a range of stand-alone Part D plans and Medicare Advantage plans that include drug coverage. Plan details — formularies, pharmacy networks, premiums — change every year, which is why CMS built Annual Enrollment (October 15 – December 7) into the calendar.
If you're happy with your current plan, review the Annual Notice of Change your plan mailed you in September. If your drugs, doctors, or pharmacies have shifted, this is the window to make a change for 2027. The 2027 plan lineup is detailed in each plan's ANOC and on Medicare.gov's Plan Finder.
A quick word on IRMAA
Higher-income beneficiaries pay an income-related surcharge (IRMAA) on top of standard Part B and Part D premiums. For 2026, the surcharge begins for single filers with income above $109,000 (based on your 2024 tax return). It's worth checking if you've had a life change — retirement, loss of a spouse — because you can request a reconsideration.
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.
Source: CMS. Standard premium shown; in some hold-harmless years many existing enrollees paid less. Confirm at Medicare.gov.
Prescription coverage
How Medicare Part D works in 2027
The old coverage gap (“donut hole”) was eliminated as of 2025 (three phases now). There's a hard yearly cap of $2,400 on what you pay out of pocket for covered drugs in 2027, and you can spread those costs across the year with the Medicare Prescription Payment Plan.
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.
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
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
Does the $2,100 cap include my monthly premium?
What if my drug isn't on my plan's formulary?
I'm on a Medicare Advantage plan with drug coverage. Does the cap apply to me?
- CMS — Medicare Part D program rules (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.