Medicare Part D

Medicare Part D in 2027 — Hattiesburg, Miss.

HATTIESBURG, Miss. — If you take prescription drugs and have Medicare, 2027 brings another adjustment worth knowing about. The way Part D pays for your medicines was simplified, and there is a firm yearly limit on what you pay out of pocket at the pharmacy counter.

The out-of-pocket limit is $2,100 in 2026 and $2,400 in 2027. Once your out-of-pocket spending on covered drugs hits that number, you pay nothing more for the rest of the calendar year on covered prescriptions. That is a real shift from how Part D used to work, and it is worth understanding before you sit down to review your coverage this fall.

The three phases of Part D in 2027

Starting in 2025, the coverage gap (often called the "donut hole") was eliminated. That leaves three phases in 2027:

1. 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 it lower, and some waive it on certain drug tiers. 2. Initial coverage phase. After the deductible, you pay a copay or a share of the cost for each prescription. Your plan pays the rest. You stay in this phase until your out-of-pocket spending reaches the yearly cap — $2,400 in 2027. 3. Catastrophic phase. Once you hit the cap, you pay nothing more for the rest of the year on covered Part D drugs.

That yearly cap — $2,400 in 2027 — applies whether your Part D coverage comes from a stand-alone drug plan or is built into a Medicare Advantage plan.

What counts toward the yearly cap

Only certain spending counts. Money you pay toward the deductible and your share of covered drug costs during the initial phase count. Manufacturer discounts on brand-name drugs also help move you toward the cap.

What does not count: your monthly premium, and drugs your plan does not cover. If a medicine is not on your plan's formulary, paying for it out of pocket will not push you toward the cap. This is why checking each plan's drug list every fall matters.

The Medicare Prescription Payment Plan

Even with a yearly cap, hitting that number early in the year can feel like a wall. A single expensive prescription in January could mean a big bill in one month.

To help, Medicare offers the Medicare Prescription Payment Plan. It is optional and free to join. Instead of paying the pharmacy directly, you spread your Part D costs across monthly bills from your plan for the rest of the year. You still pay the same total amount — you just pay it more evenly.

This program can be useful if you have a high-cost drug or expect to hit the cap. You can sign up through your Part D or Medicare Advantage plan.

Higher-income surcharges (IRMAA)

Most people pay only their plan's premium for Part D. But if your income is above certain levels, Medicare adds a surcharge called IRMAA on top of your Part D premium. For 2026, IRMAA begins for single filers with income above $109,000 (and higher thresholds apply for married couples filing jointly). Social Security uses your tax return from two years ago to decide.

If your income has dropped due to retirement or another life event, you can ask Social Security to reconsider.

What this looks like around Hattiesburg

Hattiesburg is in Forrest County, where Medicare beneficiaries can choose between stand-alone Part D drug plans and Medicare Advantage plans that include drug coverage. The number of plans available changes each year, and so do the drugs each plan covers and what it charges for them. The 2027 lineup is listed in each plan's Annual Notice of Change and on Medicare.gov's Plan Finder. The 2027 lineup is listed in each plan's Annual Notice of Change and on Medicare.gov's Plan Finder.

The nationwide Part D rules for 2027 — the $2,400 out-of-pocket cap, the $700 maximum deductible, the three phases — apply to every Part D plan. What varies plan to plan is the formulary (the list of covered drugs), the pharmacy network, and the cost-sharing at each tier. That is why reviewing your plan during the Annual Enrollment Period, October 15 through December 7, 2026, is so important — even if you were happy with it last year.

Common mistakes to avoid

• Assuming your drugs are still covered. Formularies change every January. Log in to Medicare Plan Finder at medicare.gov and check.
• Skipping enrollment because you feel healthy. If you go without creditable drug coverage after you're first eligible, you may face a lifelong late enrollment penalty.
• Overlooking Extra Help. If your income and resources are limited, the federal Extra Help program can significantly reduce Part D costs. It is worth applying even if you're not sure you qualify.
• Confusing the enrollment windows. October 15 – December 7 is for all Medicare changes. January 1 – March 31 is the Medicare Advantage Open Enrollment Period, and it has narrower rules.