What beneficiaries should know about Part D 2027

Key Points:

• The Centers for Medicare & Medicaid Services (CMS) will end the temporary Part D Premium Stabilization Demonstration after 2026, meaning 2027 Medicare Part D premiums will be set without federal subsidies and may vary widely.
• The annual out-of-pocket cap for Part D drugs continues to rise, reaching $2,400 in 2027, while insulin costs remain capped at $35 per month, and Medicare’s drug price negotiation program expands with more negotiated prices.
• Beneficiaries are advised to review their Annual Notice of Change (ANOC) in September, compare plans during Open Enrollment (Oct. 15–Dec. 7), and check eligibility for Extra Help to reduce costs.
• The Medicare Prescription Payment Plan remains available, allowing enrollees to spread out-of-pocket drug costs evenly over the year to manage expenses more predictably.
• Resources such as Medicare.gov and State Health Insurance Assistance Programs (SHIP) provide free, unbiased counseling and tools to help beneficiaries make informed decisions about their Medicare coverage.