Medicare Part D
How Medicare Part D Works in 2027: Farragut, TN
FARRAGUT, Tenn. — If you take prescription drugs and have Medicare, 2027 keeps some of the friendliest Part D rules seniors have seen in years. The out-of-pocket cap is going up modestly, the coverage gap is still gone, and the yearly deadline to pick or change a plan is still December 7.
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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.
- Every prescription checked, name by name
- Your pharmacy checked for preferred pricing
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Speak to a Licensed Insurance Agent
Click to call 855-729-3240Key takeaways
- In 2027, Part D drug plans have no coverage gap ("donut hole"), and once you spend $2,400 out of pocket on covered drugs, you pay nothing more for the rest of the year.
- Deductibles can't be higher than $700 in 2027, and only your deductible, copays, and coinsurance for covered drugs count toward the $2,400 cap, not your monthly premium.
- Every Part D plan must offer the Medicare Prescription Payment Plan, which lets you spread drug costs into monthly bills instead of paying it all at the pharmacy, though the total amount you owe stays the same.
- December 7 is still the yearly deadline to pick or change a plan, and missing it generally locks you into your current coverage unless you qualify for a Special Enrollment Period.
Here is a plain-English walk-through of how Part D works in 2027, what the numbers mean, and where to get help in the Farragut area.
The three phases of Part D in 2027
Since 2025, Part D has only three payment phases — the old "donut hole" coverage gap is gone. In 2027, here is how a plan year moves along, according to CMS Part D program rules on medicare.gov:
1. Deductible phase. You pay the full negotiated price for your drugs until you meet your plan's deductible. In 2026, no Part D plan can set a deductible higher than $615. Some plans set it lower, and some drugs may be covered before the deductible is met. 2. Initial coverage phase. Once the deductible is met, you pay a copay or coinsurance for each prescription and the plan pays the rest. You stay in this phase until your out-of-pocket spending on covered drugs hits the annual cap. 3. Catastrophic phase. Once you hit the $2,100 out-of-pocket cap in 2026, you pay $0 for the rest of the year on covered Part D drugs. This is the big change that fully took effect in 2025 and continues in 2026.
That $2,100 in 2026 ($2,400 in 2027) ceiling is a hard cap set by Medicare — it is not tied to any one plan or carrier.
What counts toward the Part D cap
Only your out-of-pocket spending on covered Part D drugs counts. That includes your deductible, copays, and coinsurance for drugs on your plan's formulary. Your monthly premium does not count toward the cap. Drugs your plan doesn't cover generally don't count either, which is why checking a plan's formulary matters.
Manufacturer discounts and payments from certain assistance programs may or may not count — the rules are detailed, and 1-800-MEDICARE or your local SHIP counselor can walk through your specific situation.
The Medicare Prescription Payment Plan
New in 2025 and continuing in 2027, every Part D plan must offer the Medicare Prescription Payment Plan. This is an optional program that lets you spread your out-of-pocket drug costs across the calendar year in monthly bills, instead of paying a big amount at the pharmacy counter.
It does not lower what you owe — the total is the same. But if you have an expensive drug early in the year, smoothing the cost over 12 months can make the deductible phase easier to manage. You can opt in through your Part D plan.
IRMAA: higher-income surcharges
If your income is above certain levels, you'll pay an extra amount on top of your Part D premium called IRMAA (Income-Related Monthly Adjustment Amount). For 2026, IRMAA generally starts above $109,000 in income for a single filer (higher for joint filers). Social Security uses your tax return from two years back to decide if IRMAA applies. If your income has dropped due to retirement or another life event, you can ask Social Security to reconsider.
The deadlines that matter
- Annual Enrollment Period: October 15 – December 7, 2026. This is when anyone with Medicare can join, drop, or switch a Part D or Medicare Advantage plan for 2027. Changes take effect January 1, 2027.
- Medicare Advantage Open Enrollment: January 1 – March 31. If you're already in a Medicare Advantage plan, you get one chance in this window to switch to another MA plan or return to Original Medicare (and pick up a stand-alone Part D plan).
Missing the December 7 deadline generally means you're locked into your current coverage for the year, unless you qualify for a Special Enrollment Period.
Availability around Farragut
Farragut is in Knox County, where a range of stand-alone Part D and Medicare Advantage prescription drug plans are offered each year. Because plan availability is set at the county level, two neighbors on the same street will see the same list of plans. You can compare what's available in Knox County using the Plan Finder at medicare.gov.
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 Knox County
(MA penetration in Knox 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 now a hard yearly cap of $2,100 in 2026 ($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
Q: Does the $2,100 cap apply to every drug I take?
Q: Do I have to sign up for the Prescription Payment Plan?
Q: What if I can't afford my drugs even with the cap?
- CMS — Medicare Part D program rules (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.