Medicare Part D
Before you pick a Part D plan in Carrollton: how the three phases work in 2027
CARROLLTON, Texas — If you take prescription drugs and you have Medicare, fall 2026 is a good time to slow down and re-read how Part D actually works. The rules changed in 2025 when Congress got rid of the coverage gap, and the 2027 numbers set new limits on what you can be asked to pay out of pocket.
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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 has a $700 maximum deductible and a $2,400 annual out-of-pocket cap on covered drugs.
- The old "donut hole" is gone — coverage now moves through three phases: deductible, initial coverage, and catastrophic.
- Once you hit the $2,400 cap, you pay nothing more for covered Part D drugs for the rest of the calendar year.
- The Medicare Prescription Payment Plan lets you spread drug costs across the year in monthly bills instead of paying at the pharmacy counter.
Whether you get your drug coverage through a stand-alone Part D plan or built into a Medicare Advantage plan, the structure below is the same. Carrollton is in Dallas County, where residents choose from a wide mix of plans during the Annual Enrollment Period each fall.
The three phases, in plain English
Part D used to have four phases, including the famous "donut hole." As of 2025, that gap is gone. In 2027, there are three phases, and you move through them in order based on what you and your plan have spent on your covered drugs.
Phase 1 — The deductible. You pay the full negotiated price of your drugs until you hit your plan's deductible. In 2027, no Part D plan can set a deductible higher than $700. Some plans set it lower, and some drugs may be covered before you meet it.
Phase 2 — Initial coverage. After the deductible, you and your plan share the cost of your drugs. You usually pay a copay or a percentage, and the plan pays the rest. You stay in this phase until your out-of-pocket spending on covered drugs reaches $2,400.
Phase 3 — Catastrophic coverage. Once your out-of-pocket costs hit $2,400 for the year, you pay nothing more for the rest of the calendar year on covered Part D drugs. This is the hard cap, and it resets every January 1.
What the $2,400 cap really means
The cap is one of the biggest changes people are still learning about. Before 2025, there was no yearly limit on what you could pay for Part D drugs. Now there is.
A few things to know:
- The $2,400 only counts what you spend on drugs covered by your Part D plan. Drugs the plan does not cover do not count toward the cap.
- Premiums do not count toward the cap.
- The cap is per person, per calendar year.
The Medicare Prescription Payment Plan
Even with the cap, a big bill in January or February can still sting. That is where the Medicare Prescription Payment Plan comes in. It is a free, optional program that lets you spread your Part D out-of-pocket costs across the rest of the calendar year in monthly payments from your plan, instead of paying the pharmacy at pickup.
You do not save money by using it — the total is the same — but it can smooth out the timing. You have to opt in through your plan. This can be especially helpful if you know you have an expensive drug coming early in the year.
Higher-income surcharges (IRMAA)
If your income is above certain levels, you pay an extra amount on top of your Part D premium called IRMAA. For 2026, the surcharge starts above $109,000 in income for a single filer (higher for joint filers). Social Security uses your tax return from two years earlier to decide, and they will send you a letter if it applies to you.
Dates to keep on your Carrollton calendar
- October 15 – December 7: Annual Enrollment Period. You can join, switch, or drop a Part D plan for the coming year.
- January 1 – March 31: Medicare Advantage Open Enrollment. If you are already in a Medicare Advantage plan, you can make one change here.
- January 1: New deductibles, phases, and the $2,400 cap reset.
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 Dallas County
(MA penetration in Dallas 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). For 2027, there’s a hard yearly cap of $2,400 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
Does the $2,100 cap apply if my drug coverage is through Medicare Advantage?
What happens if my drug is not on my plan's formulary?
Do I have to sign up for the Medicare Prescription Payment Plan every year?
Where can I get free, unbiased help in Texas?
- CMS — Medicare Part D program rules (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.
Also for Carrollton
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This page was last updated: October 7, 2026.