Medicare Part D
$2,100: the new Part D out-of-pocket ceiling in Hattiesburg
HATTIESBURG, Miss. — Starting January 1, 2027, no one with a Medicare Part D drug plan will pay more than $2,400 out of pocket for covered prescriptions in a calendar year. The out-of-pocket ceiling moves up from $2,100 in 2026, and it shifts right as the Annual Enrollment Period (Oct. 15 – Dec. 7) gets underway here in the Pine Belt.
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Key takeaways
- Starting January 1, 2027, Medicare Part D out-of-pocket drug costs are capped at $2,400 per year, up from the $2,100 cap in 2026.
- Once you hit that $2,400 cap in 2027, you pay nothing more for covered prescriptions at in-network pharmacies for the rest of the year, since the old "donut hole" coverage gap is gone.
- The optional Medicare Prescription Payment Plan lets you spread your out-of-pocket drug costs into monthly bills instead of paying it all at once, though it doesn't lower what you owe overall.
- The Annual Enrollment Period runs Oct. 15 – Dec. 7, and it's a good time to check your plan since formularies, deductibles (up to $700 in 2027), and IRMAA premium surcharges can change each year even though the annual out-of-pocket cap still applies to everyone.
For people who take costly brand-name drugs — cancer therapies, blood thinners, insulin combinations, biologics for autoimmune conditions — the new cap can change the math on the whole year.
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 Forrest County
(MA penetration in Forrest 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.
What actually changes in 2027
The $2,400 figure for 2027 replaces the $2,100 cap in 2026. It's indexed to rise a little each year. Once your out-of-pocket spending on covered Part D drugs hits that ceiling, you pay nothing more for the rest of the plan year on covered prescriptions filled at an in-network pharmacy.
A few things to keep in mind:
- The cap only counts what you pay for covered Part D drugs. Premiums don't count toward it.
- The Part D deductible in 2026 can be up to $615, depending on the plan.
- If a drug isn't on your plan's formulary, what you spend on it generally doesn't count toward the cap.
Source: CMS — Medicare Part D program rules (medicare.gov).
The "donut hole" is really gone
For years, Part D had four phases, including the famous coverage gap — the "donut hole" — where beneficiaries suddenly paid a bigger share of drug costs mid-year. That gap was eliminated in 2025 and stays gone in 2027.
Part D now has three simpler phases:
1. Deductible — you pay full negotiated price until you meet the plan's deductible (up to $700 in 2027). 2. Initial coverage — you pay a copay or coinsurance; the plan pays the rest. 3. Catastrophic coverage — once your out-of-pocket total reaches $2,400 in 2027, you pay nothing more for covered drugs for the rest of the year.
No more mid-year surprise at the pharmacy counter where the price suddenly jumps.
The Medicare Prescription Payment Plan: spreading the cost
Hitting a $2,400 cap in 2027 is good news over the year, but for someone on an expensive medication, most of that spending can pile up in January and February. That's where the Medicare Prescription Payment Plan comes in.
This is a free, optional program that lets you spread your out-of-pocket drug costs across the calendar year in monthly bills instead of paying it all at the pharmacy up front. You still owe the same total — it's not a discount — but you don't have to hand over hundreds of dollars in one trip.
A few things worth knowing:
- You sign up through your Part D or Medicare Advantage drug plan, not through Medicare directly.
- You can opt in at any time during the year, though signing up earlier captures more of your annual spending.
- If you miss a monthly payment, you can be removed from the program (but you keep your drug coverage).
The program tends to help most if you have a large, predictable drug bill early in the year. If your prescriptions are inexpensive, the monthly billing may not be worth the paperwork.
What Hattiesburg residents should do during AEP
Hattiesburg is in Forrest County, where Medicare beneficiaries have a range of stand-alone Part D plans and Medicare Advantage plans with drug coverage to choose from during the Annual Enrollment Period. Plan availability, formularies, and pharmacy networks are set at the county level, so what's offered here may differ from Lamar County next door.
Before Dec. 7, it's worth doing three things:
- Log in to your Medicare account at medicare.gov and run the Plan Finder with your current drug list and preferred pharmacy.
- Read your plan's Annual Notice of Change (ANOC) — the letter that came in September. It spells out what's different for 2027.
- Check that your regular pharmacy is still "preferred" on your plan. Preferred vs. standard status can meaningfully change your costs, even under the new cap.
If you're happy with your coverage, you don't have to do anything. But formularies change every year, and a drug that was covered cheaply in 2026 could sit in a different tier in 2027.
A note on higher earners
Most people pay the standard Part B and Part D premiums. If your 2024 income was above $109,000 (single filer) or $218,000 (married filing jointly), you'll pay an IRMAA surcharge on top of your Part D and Part B premiums in 2026. The new $2,100 cap still applies to you — IRMAA is a premium adjustment, not a benefit change.
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 on what you pay out of pocket for covered drugs — $2,100 in 2026 and $2,400 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 $2,400 cap include my monthly premium?
If I switch plans mid-year, does my $2,400 total reset?
I don't take expensive drugs. Does any of this matter to me?
- CMS — Medicare Part D program rules (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.