CMS has set the 2027 Part D annual out-of-pocket threshold at $2,400, up from $2,100 in 2026. Medicare’s consumer guidance also lists a maximum Part D deductible of $700 for 2027, although individual plans may have lower deductibles or none.
Once qualifying out-of-pocket spending reaches the threshold, the catastrophic stage removes further out-of-pocket charges for covered Part D drugs for the rest of that calendar year. The word “covered” matters. This is not a $2,400 limit on all medical bills or every medicine you might buy. Premiums remain a separate cost.
Compare the plan, not just the limit
Enter your current prescriptions and preferred pharmacies when comparing plans. Check the exact formulation and dose. Keep a note of medicines that need extra approval and ask how those requirements work before enrolling.
A person who spends less than the limit can still see a meaningful difference between plans. The deductible, pharmacy price and premium all deserve attention.
Follow your spending record
Your drug plan’s Explanation of Benefits shows spending and coverage-stage information. Use it to check what has counted rather than adding every pharmacy receipt yourself.
Medicare’s Prescription Payment Plan can spread eligible drug expenses across the year. Medicare says this changes payment timing; it does not itself reduce the total price. Ask the plan how a proposed payment schedule would fit your cash flow.
