Medicare Part D

What the 2027 Part D cap and deductible mean for you

Farmington Hills, Mich. — It is fall 2026, and the Annual Enrollment Period for 2027 Medicare coverage is underway. From now through Dec. 7, 2026, people with Medicare can review, switch or drop their Part D drug coverage for the year ahead. For Farmington Hills residents, two confirmed numbers from the Centers for Medicare & Medicaid Services (CMS) shape the 2027 conversation: a $2,400 annual out-of-pocket cap on covered Part D drugs, and a maximum plan deductible of $700.

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2027 DRUG LIST ALERT

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Part D for 2027Farmington Hills, MI

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By MyMedicarePlans Editorial Desk · Medicare Education✓ Verified Team

Published 2026-09-29·9 min read·✓ Reviewed·● Farmington Hills, MI

Key takeaways

For 2027, the Part D out-of-pocket cap rises to $2,400 (up from $2,100 in 2026), and the maximum deductible any Part D plan can charge is $700 (up from $615 in 2026).
Your plan's Annual Notice of Change (ANOC), mailed in September, spells out how your 2027 premium, deductible and drug list (formulary) will differ from 2026 — read it before Dec. 7, 2026.
The Medicare Prescription Payment Plan lets you spread out-of-pocket drug costs across the calendar year in monthly amounts instead of paying at the pharmacy counter.
Farmington Hills sits in Oakland County, where 13 carriers offer Medicare Advantage plans that include drug coverage; stand-alone Part D is picked separately from Advantage-with-drug coverage.

What is actually changing for 2027

Two Part D limits are set at the federal level and apply nationwide, including in Farmington Hills.

The annual out-of-pocket cap for covered Part D drugs will be $2,400 in 2027, up from $2,100 in 2026. Once your out-of-pocket spending on covered drugs reaches that amount, you pay $0 for the rest of the calendar year on drugs on your plan's formulary.

The maximum Part D deductible a plan can charge in 2027 is $700, up from $615 in 2026. Plans can charge less — some charge nothing on certain tiers — but no plan can charge more than the ceiling.

CMS has also published the 2027 national base beneficiary premium at $41.33. That figure is a formula input used to calculate late-enrollment penalties and certain surcharges — it is not what any specific plan charges for a monthly premium.

Two other numbers that affect drug costs indirectly — the 2027 Part B standard premium and deductible, and the 2027 IRMAA income brackets — have not been announced yet. CMS usually publishes them in November. Until then, treat any figure you see quoted as an estimate.

Read your ANOC before you decide

Every plan mails an Annual Notice of Change (ANOC) in September. It is the document that tells you exactly how your plan will change on Jan. 1, 2027 — premium, deductible, copays, and, critically, the formulary, which is the list of drugs the plan covers.

Formularies change every year. A drug can move to a different tier (which changes what you pay), gain a prior-authorization or step-therapy requirement, or be dropped from the list entirely. A generic version may be added. If you take a maintenance medication, check its 2027 tier and any new rules before Dec. 7. If a drug you rely on is being dropped, ask your prescriber whether an alternative on the formulary would work — and know that new plans generally must provide a transition fill (typically a one-time, 30-day supply) so you have time to sort out a replacement or an exception request.

The Prescription Payment Plan

The Medicare Prescription Payment Plan is an option that started in 2025 and continues in 2027. Instead of paying the pharmacy at pickup, you get a monthly bill from your plan that spreads your out-of-pocket drug costs across the remaining months of the year. It does not change what you owe overall — it just smooths the timing. This can help if you face a large cost early in the year, such as a specialty medication with high cost-sharing before you hit the $2,400 cap.

You opt in through your Part D or Medicare Advantage drug plan; enrollment is free, and you can leave the program at any time.

Stand-alone Part D or drug coverage inside Medicare Advantage

Farmington Hills residents generally have two ways to get Part D:

A stand-alone Part D plan (PDP), paired with Original Medicare (and, often, a Medigap policy).
Drug coverage built into a Medicare Advantage plan (MA-PD), which bundles Parts A, B and D into one plan.

Farmington Hills is in Oakland County, where CMS lists 103 Medicare Advantage plans for the coming year, and 13 carriers offer Medicare Advantage with drug coverage. Stand-alone Part D plans are sold across a wider, multi-state region, so plan counts for PDPs are set at the regional level rather than by county.

The choice matters because you generally cannot hold both a stand-alone PDP and an MA-PD at the same time — enrolling in one can automatically disenroll you from the other. If you use a Medigap policy, you will normally need a stand-alone PDP for drugs. If you are considering a Medicare Advantage plan, check whether its formulary and pharmacy network fit your prescriptions.

What to do between now and Dec. 7

Pull your ANOC (mailed in September) and note the 2027 deductible, tiers and any new rules on your drugs.
Make a list of your current prescriptions, dosages and preferred pharmacies.
Use the Plan Finder at Medicare.gov to compare 2027 plans against that list; the tool estimates annual drug costs for your specific medications.
If nothing needs to change, you do not need to act — your current plan renews for 2027 as described in the ANOC.

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 Oakland County

56% are on Medicare Advantage
(MA penetration in Oakland County)

56%

44%

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 2026

The old coverage gap (“donut hole”) is eliminated as of 2025 (three phases now). There’s now a hard yearly cap of $2,100 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.

Key dates

Medicare enrollment periods at a glance

Around your 65thInitial Enrollment PeriodA 7-month window around the month you turn 65 — your first chance to sign up.
October 15 – December 7Annual Enrollment PeriodAnyone with Medicare can join, switch, or drop a Medicare Advantage or Part D plan.
January 1 – March 31Medicare Advantage Open EnrollmentIf you're already in a Medicare Advantage plan, you can make one change.
January 1 – March 31General Enrollment PeriodFor people who missed their first chance to sign up for Part B.
VariesSpecial Enrollment PeriodTriggered by life events like moving or losing other coverage.

Dates are set by Medicare and apply nationwide. Confirm your personal windows at Medicare.gov or 1-800-MEDICARE.

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.

Your total yearly drug costs$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

What happens if I do nothing during Annual Enrollment?

If your current Part D or Medicare Advantage plan is offered again in 2027, you stay in it automatically, with the changes described in your ANOC. If your plan is not being renewed, your plan and CMS will send a written notice, and you will have a special enrollment opportunity to pick a new plan.

Does the $2,400 cap include my monthly premium?

No. The 2027 out-of-pocket cap counts what you spend on covered drugs — deductibles and copays or coinsurance at the pharmacy. Monthly premiums are separate and do not count toward the $2,400.

Are there stand-alone Part D plans available to Farmington Hills residents?

Yes. Stand-alone Part D plans are sold by CMS-defined multi-state region, not by county, so Michigan residents have PDP options even though county-level Medicare Advantage counts are reported separately. Medicare.gov's Plan Finder will show the specific PDPs available at your ZIP code for 2027.

Can I still change my mind after Jan. 1, 2027?

If you are in a Medicare Advantage plan, the Medicare Advantage Open Enrollment Period runs Jan. 1 – March 31, 2027, and lets you switch to another Advantage plan or return to Original Medicare with a stand-alone Part D plan. Outside those windows, you generally need a Special Enrollment Period. ## Where to get personalized help For decisions tied to your own prescriptions and budget, use official, unbiased sources: **Medicare.gov** — the Plan Finder compares 2027 plans against your drug list and ZIP code. **1-800-MEDICARE** (1-800-633-4227), available 24/7. **Michigan MMAP**, the state's **State Health Insurance Assistance Program (SHIP)**, offers free one-on-one Medicare counseling to Farmington Hills residents. Take the time you need before Dec. 7, 2026 — the deadline is a date on the calendar, not a reason to rush.

Sources & further reading

CMS — Medicare Part D program rules (medicare.gov)
CMS — Medicare enrollment periods (medicare.gov)
CMS — MA/Part D Landscape & Plan Finder data

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

Also for Farmington Hills

Medicare Advantage in Farmington Hills Medicare Supplement in Farmington Hills Medicare 2026 in Michigan

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This page was last updated: September 2026.