Medicare Part D

Part D 2027 changes for Palatine, Illinois

PALATINE, Ill. — If you take prescription drugs and have Medicare, the way you pay for them continues to shift in 2027. Starting January 1, 2027, Medicare Part D caps what you pay out of pocket for covered drugs at $2,400 for the year, and the old "donut hole" coverage gap remains gone. For anyone in Palatine watching drug costs, this is worth understanding before the Annual Enrollment Period closes on December 7.

What the $2,400 cap actually means

Once your out-of-pocket spending on covered Part D drugs reaches $2,400 in 2027, you pay nothing more for the rest of the calendar year on those covered prescriptions. That cap applies whether you have a stand-alone Part D plan or drug coverage through a Medicare Advantage plan.

A few things to keep in mind. The cap counts what you pay — your deductible and copays or coinsurance on covered drugs. It does not include your monthly premium. And it only applies to drugs your plan covers under Part D; drugs the plan does not cover do not count toward the $2,400.

The Part D deductible can be no higher than $615 in 2026 and $700 in 2027, though plans can set a lower one.

Goodbye, donut hole

For years, Part D had four phases, and the confusing "coverage gap" in the middle left many people paying more mid-year than they expected. As of 2025, that gap was eliminated. In 2027, Part D has three straightforward phases:

1. Deductible phase — you pay full negotiated price until you meet your plan's deductible (up to $700 in 2027). 2. Initial coverage phase — you pay a copay or coinsurance, and your plan pays the rest. 3. Catastrophic phase — once your out-of-pocket spending hits $2,400, you pay nothing more for covered drugs for the rest of the year.

That's it. No more donut hole to fall into partway through the year.

The Medicare Prescription Payment Plan

Here is another change worth knowing about, especially if you take a high-cost drug early in the year. The Medicare Prescription Payment Plan (sometimes called "M3P") is a free, optional program that lets you spread your out-of-pocket drug costs across the calendar year in monthly payments.

Instead of paying $500 or $800 at the pharmacy in January, you'd pay $0 at the counter, and your Part D plan would bill you monthly for what you owe. You still pay the same total; it just gets smoothed out.

You have to opt in. You can sign up before the plan year starts or any time during the year by contacting your Part D or Medicare Advantage plan directly. It tends to help most if you have predictable high drug costs early in the year.

What Palatine residents should do this fall

Palatine is in Cook County, where Medicare beneficiaries have a wide range of stand-alone Part D and Medicare Advantage plans to choose from each year. For 2027, Cook County has 58 Medicare Advantage plans from 11 carriers. Because plans can change their formularies (the list of drugs they cover), their pharmacy networks and their cost-sharing tiers from one year to the next, the smart move is to review your coverage during the Annual Enrollment Period, which runs from October 15 through December 7.

If you have Medicare Advantage, you also have the Medicare Advantage Open Enrollment Period from January 1 through March 31 to make one change.

Two other things to know for 2027:

• IRMAA: Higher-income enrollees pay an income-related surcharge on top of their Part B and Part D premiums. For 2026, that surcharge kicks in above $109,000 in income for a single filer (higher thresholds apply for married couples filing jointly).
• Extra Help: If your income is limited, the federal Extra Help program can significantly lower Part D costs. It's worth checking eligibility at medicare.gov.

Where to get personalized answers

Nothing in this article is specific to your situation. For a review of your own drugs, plan and costs, use the Plan Finder at medicare.gov, call 1-800-MEDICARE (24/7), or contact Illinois SHIP — the state's free, unbiased Medicare counseling program — for one-on-one help.