Medicare Part D

Fort Pierce guide to Part D's 2027 cap & phases

FORT PIERCE, Fla. — If you take prescription drugs and rely on Medicare, 2027 brings a set of numbers worth knowing. Part D, the part of Medicare that helps pay for prescription drugs, has a yearly out-of-pocket cap, a maximum deductible, and just three payment phases instead of the old four. Here is a plain-language guide to how it all fits together.

The big change: a $2,100 (2026; $2,400 in 2027) yearly cap

In 2027, the most you will pay out of pocket for covered prescription drugs under Part D is $2,400 for the year, according to Medicare. Once your spending on covered drugs hits that number, you pay nothing for the rest of the calendar year on those drugs. (The comparable cap for 2026 is $2,100.)

That cap resets every January 1. It applies whether you get drug coverage through a stand-alone Part D plan or through a Medicare Advantage plan that includes drug coverage.

The deductible: up to $615 (2026; $700 in 2027)

Before your plan starts sharing drug costs with you, you may have to meet a deductible. In 2027, the maximum Part D deductible is $700 (it is $615 in 2026). Plans can set their deductible lower than that — some set it at zero — but no Part D plan can charge more than the yearly maximum as a deductible.

During the deductible phase, you generally pay the full negotiated price for your covered drugs until you reach that amount.

The three phases of Part D in 2027

The old “donut hole” coverage gap was eliminated in 2025, so Part D now has just three phases:

1. Deductible phase. You pay the full cost of your covered drugs until you meet your plan’s deductible (up to $615 in 2026 ($700 in 2027)). 2. Initial coverage phase. You and your plan share the cost. You typically pay a copay or a percentage (coinsurance) for each prescription. This continues until your out-of-pocket spending reaches $2,100 in 2026 ($2,400 in 2027). 3. Catastrophic phase. Once you hit the cap ($2,100 in 2026, $2,400 in 2027), you pay $0 for covered drugs for the rest of the year.

This is a simpler structure than in past years, and for people with high drug costs, that $2,400 ceiling is the headline number for 2027.

Smoothing your costs month to month

If a big drug bill early in the year would be hard to handle, Medicare offers the Medicare Prescription Payment Plan. It’s optional and free to join. Instead of paying the pharmacy a large amount at once, you spread your Part D out-of-pocket costs across monthly payments to your plan over the rest of the year.

You don’t pay less overall — the total is the same — but the timing is easier for many households. You can sign up through your Part D or Medicare Advantage drug plan.

Higher-income surcharge (IRMAA)

Most people pay only their plan’s premium. But if your income is above certain limits, you also pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of your Part D premium. In 2026, IRMAA starts to apply for single filers with income above $109,000 (and higher thresholds for joint filers). Social Security notifies you if this applies to you, based on your tax return from two years earlier.

What this means in Fort Pierce

Fort Pierce is in St. Lucie County, where Medicare beneficiaries can compare stand-alone Part D plans and Medicare Advantage plans that include drug coverage. For 2027, the county has 66 Medicare Advantage plans from 12 carriers. The number of plans available is set at the county level, and it changes each year. You can see the current list, along with each plan's formulary (its list of covered drugs), on Medicare.gov's Plan Finder.

Two dates matter most:

• Oct. 15 – Dec. 7, 2026: Medicare Annual Enrollment Period. You can join, switch, or drop a Part D or Medicare Advantage plan for 2027.
• Jan. 1 – March 31: Medicare Advantage Open Enrollment Period. If you’re already in a Medicare Advantage plan, you can switch to another one or return to Original Medicare.