Yes. Most standalone Part D premiums will rise in 2027 after CMS ends a temporary subsidy program that had been holding premiums down since 2025. The standard deductible increases to $700, and the annual out-of-pocket cap rises to $2,400.

Why are Part D premiums going up in 2027?

Two things happened at once. The Inflation Reduction Act shifted more drug costs onto insurers starting in 2025, and the government subsidy that absorbed the shock is ending.

The IRA eliminated the old "donut hole" coverage gap and capped out-of-pocket drug spending at $2,000 in 2025 (indexed to $2,400 for 2027). Those are real benefits for patients. But they moved billions in costs from patients and manufacturers onto Part D plan sponsors, which drove up the bids that insurers submit to CMS each year.

To cushion the transition, CMS launched the Part D Premium Stabilization Demonstration in 2025. It was a temporary subsidy: about $15/month off the base premium in 2025, about $10/month in 2026, plus caps on how much any single plan could raise its premium year over year. The program cost $9.8 billion over two years and covered 99% of standalone PDP enrollees.

On July 28, 2026, CMS announced it is ending the demonstration after December 31, 2026. The agency said insurers now have "sufficient experience under the redesigned Part D benefit" to price their plans without the subsidy.

The result: the national average monthly bid amount for 2027 rose 24% to $296.05.

What are the actual dollar amounts changing for 2027?

Here is a comparison of the major Part D cost parameters:

• Base beneficiary premium: $38.99/month in 2026, $41.33/month in 2027 (up 6%, capped by the IRA through 2029)
• Standard deductible: $615 in 2026, $700 in 2027 (up $85)
• Out-of-pocket cap: $2,100 in 2026, $2,400 in 2027 (up $300)
• Premium subsidy (demonstration): $10/month reduction in 2026, gone after December 31, 2026
• Monthly insulin cap: $35 (no change)
• Recommended vaccines: $0 (no change)

The base beneficiary premium ($41.33) is a CMS calculation input that determines the government's share of Part D costs. It is not a floor or an average. Your actual premium depends on how your specific plan's bid compares to the national average, plus any supplemental coverage the plan offers. Some plans have $0 premiums; others are much higher.

The IRA caps growth in the base beneficiary premium at 6% per year through 2029.

How much more will I actually pay?

Your actual premium change depends on your coverage, your plan, and your medications.

Your type of coverage matters. The temporary premium-stabilization program that ends after 2026 applied only to standalone Part D prescription drug plans, not to drug coverage included in Medicare Advantage.

In 2026, the average standalone Part D premium was approximately $36 per month, compared with about $8 for the drug portion of a Medicare Advantage plan, according to KFF. Medicare Advantage plans can use rebate dollars from their medical coverage to reduce drug premiums. Standalone plans cannot.

However, a lower drug premium does not necessarily make Medicare Advantage less expensive or better for you. Before switching from Original Medicare, compare physician networks, prior-authorization requirements, medical costs, travel coverage and, if you have Medigap, whether you could get that coverage back later.

Your individual plan matters. Premiums can vary widely between plans in the same ZIP code. But do not compare premiums alone. A plan with a low premium may have a higher deductible, less favorable drug coverage or higher copays.

Your medication list matters. A plan can keep its premium low while moving one of your drugs to a more expensive tier. It may also add prior authorization or require you to try another medication first. These changes can cost you far more than a premium increase.

CMS expects to release final average premiums and details about individual 2027 plans in mid-to-late September.

Does the $2,000 out-of-pocket limit still exist?

Yes, but $2,000 was the limit for 2025. It increased to $2,100 in 2026 and will rise to $2,400 in 2027.

Once the eligible costs paid by you, or by certain programs on your behalf, reach $2,400, you enter catastrophic coverage. You then pay $0 for covered Part D drugs for the rest of 2027.

Your premiums do not count toward the $2,400 limit. Neither do medications that are not covered by your plan or drugs covered under Medicare Part B.

Under the standard Part D benefit:

1. Deductible: You generally pay the full cost of drugs subject to the deductible until you reach $700. Your plan may charge a lower deductible or apply it only to certain drug tiers. Covered insulin and qualifying vaccines are exempt.
2. Initial coverage: You and your plan share the cost. Actual copays and coinsurance vary by plan.
3. Catastrophic coverage: You pay $0 for covered Part D drugs after reaching the $2,400 limit.

Under current law, the old coverage gap (the "donut hole") has been eliminated.

Which drugs will have negotiated prices in 2027?

Negotiated Medicare prices for 10 high-cost medications took effect in 2026, including Eliquis, Jardiance, Xarelto and Januvia.

On January 1, 2027, negotiated prices take effect for 15 additional high-spend drugs. This group includes Ozempic, Rybelsus and Wegovy, along with Trelegy Ellipta, Xtandi, Ibrance, Linzess, Ofev and Xifaxan.

These prices should reduce Medicare and patient spending overall. But your personal savings will still depend on your plan's copay or coinsurance and whether Medicare covers the drug for your medical condition. A negotiated price does not automatically expand coverage to every use of a medication.

Separately, certain eligible Medicare beneficiaries may receive specific GLP-1 medications for $50 per month through the temporary Medicare GLP-1 Bridge, which runs through December 31, 2027.

What should I do before December 7?

Medicare Open Enrollment runs from October 15 through December 7, 2026. Here is what to do:

1. Read your Annual Notice of Change. Your plan must send this notice by September 30. Check four things:

• Your 2027 premium
• Your deductible
• Whether your medications are still covered and on the same tiers
• Whether your pharmacy is still preferred

A drug moving to a more expensive tier can increase your annual costs by far more than a change in your premium.

2. Use Medicare Plan Finder starting October 1. Go to Medicare.gov/plan-compare and enter every prescription you take, including the dose, quantity and frequency. Add the pharmacy you use.

Compare the estimated total annual cost, not just the monthly premium. A low-premium plan with a $700 deductible and expensive drug tiers may cost more over the year than a plan with a higher premium.

3. Check your pharmacy. The same drug under the same plan may cost differently at a preferred or standard pharmacy. Confirm that your pharmacy will remain preferred in 2027, and compare mail-order prices for maintenance medications.

4. See whether you qualify for Extra Help. Medicare's Low-Income Subsidy can reduce premiums, deductibles and copays for people with limited income and resources. Visit SSA.gov or call 1-800-MEDICARE.

5. Consider the Medicare Prescription Payment Plan. Every Part D plan must offer this option. It spreads your out-of-pocket drug costs across monthly bills instead of requiring you to pay everything at the pharmacy. It does not reduce your total cost, but it can help you avoid a large bill early in the year.

6. Ask for unbiased help if you need it. Every state offers free counseling through the State Health Insurance Assistance Program. SHIP counselors do not sell insurance or earn commissions.

How Pinnie can help

Pinnie advocates can help you organize your medication information, understand your Annual Notice of Change and use Medicare Plan Finder to compare estimated premiums and prescription costs.

Pinnie does not sell insurance or enroll people in Medicare plans. For an individual plan recommendation, you can also speak with SHIP or a licensed Medicare insurance professional.

Get started with Pinnie.