Medicare Part D
Part D in 2027: the $2,400 cap in Sunrise, FL
Sunrise, Fla. — If you take prescription drugs and rely on Medicare, 2027 brings figures worth understanding before you refill anything in January. Medicare Part D works in three phases, and your out-of-pocket spending on covered drugs is capped at $2,100 in 2026 and $2,400 in 2027, according to CMS.
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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.
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Key takeaways
- In 2027, your out-of-pocket spending on covered Part D drugs is capped at $2,400 for the year.
- The Part D deductible can be no higher than $615 in 2026 and $700 in 2027, though plans may set it lower.
- The old coverage gap ("donut hole") is gone — Part D now has three phases: deductible, initial coverage, and catastrophic.
- The Medicare Prescription Payment Plan lets you spread your drug costs across the calendar year in monthly installments.
That cap, along with a maximum deductible of $700 in 2027, sets the ceiling and the floor of what you could pay for covered medications through a stand-alone Part D plan or a Medicare Advantage plan that includes drug coverage.
The three phases, in plain English
Part D used to have four phases, including the confusing "donut hole." As of 2025, that gap is gone. In 2027, every Part D plan follows the same three-phase structure set by CMS.
Phase 1 — Deductible. You pay the full negotiated price of your covered drugs until you meet your plan's deductible. Plans can set this lower, but no plan can charge more than $700 in 2027. Some plans waive the deductible on certain drug tiers.
Phase 2 — Initial coverage. After the deductible, your plan starts sharing the cost. You pay a copay or a percentage (coinsurance) for each prescription, and your plan pays the rest. You stay in this phase until your out-of-pocket spending on covered drugs reaches the annual cap — $2,400 in 2027.
Phase 3 — Catastrophic coverage. Once you hit the annual cap ($2,400 in 2027), you pay nothing more for covered Part D drugs for the rest of the calendar year. This is new-normal territory — before 2025, there was no true annual limit.
What the $2,400 cap actually covers
The cap applies to your out-of-pocket spending on drugs covered by your Part D plan's formulary. It does not include your monthly Part D premium, and it does not apply to drugs your plan doesn't cover.
If a medication isn't on your plan's formulary, spending on it doesn't count toward the cap. That's one reason it pays to check your plan's drug list during the Annual Enrollment Period each fall.
The monthly payment option
CMS also continues the Medicare Prescription Payment Plan in 2027. It's optional and free to join. Instead of paying a large amount at the pharmacy counter in a single month, you can spread your yearly Part D drug costs across monthly bills from your plan.
You still owe the same total — the program doesn't lower your drug costs — but it can smooth out a bill that would otherwise land all at once, particularly early in the year when the deductible hits. You can sign up before the plan year starts or any time during the year.
Where you get Part D in Sunrise
Sunrise is in Broward County, where residents can get Part D coverage two ways: through a stand-alone Prescription Drug Plan added to Original Medicare, or through a Medicare Advantage plan that includes drug coverage. For 2027, Broward County has 87 Medicare Advantage plans from 16 carriers; either way, the rules — the $700 maximum deductible, the three phases, and the $2,400 cap — apply the same way.
The number of plans available in Broward County changes each year. You can compare what's offered for your ZIP code at medicare.gov using the Plan Finder tool.
Dates and income thresholds to know
- Annual Enrollment Period: October 15 through December 7, 2026. This is when most people join, drop, or switch a Part D plan for 2027.
- Medicare Advantage Open Enrollment: January 1 through March 31, for people already in a Medicare Advantage plan who want to make one change.
- IRMAA: If your income in 2024 was above $109,000 as a single filer (or $218,000 filing jointly), you may pay a Part D income-related surcharge in 2026 on top of your plan's premium.
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.
By the numbers
How people get Medicare in Broward County
(MA penetration in Broward County)
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”) is eliminated as of 2025 (three phases now). There’s a hard yearly cap of $2,400 in 2027 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.
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 $2,400 cap include my Part D premium?
What happens to drugs my plan doesn't cover?
Do I have to sign up for the monthly payment plan?
Where can I get help comparing plans in Broward County?
- CMS — Medicare Part D program rules (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.
Also for Sunrise
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This page was last updated: October 6, 2026.