Medicare Part D
Medicare's 2027 Drug Cap: Friendswood, TX Guide
FRIENDSWOOD, Texas — Starting January 1, 2027, Medicare's prescription drug coverage carries a new annual ceiling. The headline change: no one on a Part D plan will pay more than $2,400 out of pocket for covered prescription drugs in a calendar year.
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Key takeaways
- - Starting January 1, 2027, no one on a Medicare Part D plan will pay more than $2,400 out of pocket for covered prescription drugs in a calendar year, and after that you pay $0 for the rest of the year.
- - The old "donut hole" coverage gap is gone as of 2025, and Part D now works in three phases: a deductible (maximum $700 in 2027), an initial coverage phase, and a $0 catastrophic phase.
- - An optional program called the Medicare Prescription Payment Plan (M3P) lets you spread your out-of-pocket drug costs into monthly payments, roughly $175 a month, instead of paying it all at the pharmacy.
- - Annual Enrollment runs October 15 through December 7, and Medicare Advantage enrollees get a second chance to make one change between January 1 and March 31.
Friendswood retirees, a big Part D change is coming January 1
That figure — set by Medicare for 2027 — is the headline of this Annual Enrollment season, which runs from October 15 through December 7, 2026. For anyone in Friendswood who has felt the sting of high drug costs, it's worth understanding what's changing and what stays the same.
The Part D cap, in plain English
Once your out-of-pocket spending on covered Part D drugs hits $2,400 in 2027, you pay $0 for the rest of the year on those covered prescriptions. That's it. There is no separate "catastrophic" bill after that point.
A few things to know:
- The cap applies to what you pay for covered drugs — deductibles and copays or coinsurance count toward it.
- Monthly premiums do not count toward the $2,400.
- Drugs that aren't on your plan's formulary (covered list) don't count either.
- The cap resets each January.
This is a permanent change built into federal law, not a one-year promotion.
Goodbye, "donut hole"
If you've been on Medicare for a while, you may remember the dreaded coverage gap — the "donut hole" where your share of drug costs used to jump partway through the year. That gap was eliminated as of 2025.
For 2027, Part D has just three phases:
1. Deductible phase — up to a maximum deductible of $700 in 2027 (plans can set it lower). 2. Initial coverage phase — you pay copays or coinsurance until your out-of-pocket total reaches $2,400. 3. Catastrophic phase — you pay $0 for covered drugs the rest of the year.
Simpler. And for people who take expensive medications, meaningfully more predictable.
The Medicare Prescription Payment Plan: spreading costs out
Here's a piece a lot of Friendswood readers haven't heard about yet. Even with the $2,400 cap, hitting that number early in the year — say, from a single pricey prescription in January — can hurt a fixed-income budget.
That's where the Medicare Prescription Payment Plan comes in. It's an optional program (sometimes called "M3P") that lets you spread your out-of-pocket drug costs across monthly payments instead of paying at the pharmacy counter.
Key points:
- It doesn't lower what you owe overall — it just smooths the timing.
- You have to opt in through your Part D or Medicare Advantage drug plan.
- You can join before the plan year or any time during the year.
- If you decide it's not for you, you can leave.
For someone facing a large fill in January, this can turn a $2,100 in 2026 ($2,400 in 2027) wallop into roughly $175-a-month payments over the year. Ask your plan how to sign up.
What's happening locally
Friendswood sits in Galveston County (with a slice in Harris County), and Medicare plan availability is set at the county level. That means the menu of Part D and Medicare Advantage plans open to your neighbor across town in League City looks similar to yours.
During Annual Enrollment — October 15 to December 7 — you can:
- Switch from Original Medicare to a Medicare Advantage plan, or vice versa.
- Change Part D prescription drug plans.
- Join a Part D plan if you didn't have one.
There's also a second window, the Medicare Advantage Open Enrollment Period, from January 1 to March 31, when Advantage enrollees can make one change.
The point isn't to chase a specific plan. It's to check every fall that the plan you're in still covers your drugs on terms that make sense for your situation. Formularies and pharmacy networks change year to year — even when your prescriptions don't.
A quick word on higher earners
If your income is above $109,000 as a single filer (or $218,000 filing jointly) based on your 2024 tax return, you may pay an IRMAA surcharge on top of your standard Part B and Part D premiums in 2026. If your income has dropped due to a life event — retirement, loss of a spouse — you can ask Social Security to reconsider.
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 Galveston County
(MA penetration in Galveston 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”) was eliminated as of 2025 (three phases now). The yearly out-of-pocket cap on covered drugs is $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 $2,100 cap apply to every drug I take?
Do I have to sign up for the payment plan?
I don't take many prescriptions. Does 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.