Plans & Coverage
Part D Prescription Drug Plans
Medicare Part D covers prescription drugs. You can get it as a standalone plan (with Original Medicare or Medigap) or built into a Medicare Advantage plan. For 2027, the standard benefit has a $700 deductible and a $2,400 annual out-of-pocket threshold. Plan deductibles and cost-sharing can vary, so check each plan's details.
How to choose
A low premium does not necessarily mean lower total costs. Check whether your medications are on each plan's formulary, their tiers, the deductible, and other cost sharing. We can help compare estimated annual costs for the plans available to you.
The 2027 standard benefit
The former coverage-gap phase is gone. Under the 2027 standard benefit, the deductible is $700 and the annual out-of-pocket threshold is $2,400. After your qualifying out-of-pocket costs reach the threshold, you pay no cost-sharing for covered Part D drugs for the rest of the year. Plans may use different deductible and cost-sharing designs; review each plan's benefit details.
Questions, answered
What is the Part D late enrollment penalty?
If you go without creditable drug coverage after you're first eligible for Medicare, a permanent late enrollment penalty is added to your monthly premium. The penalty is 1% of the national base premium for every month you went without coverage. Enrolling on time — or keeping creditable employer drug coverage — avoids it.
Can I change Part D plans every year?
Yes. During the Annual Enrollment Period (Oct 15–Dec 7) you can switch Part D plans for the next year. We review your plan each fall to make sure your medications are covered at the best cost.
What are the 2027 Part D deductible and out-of-pocket limit?
The 2027 defined standard Part D benefit has a $700 deductible and a $2,400 annual out-of-pocket threshold. Plan designs and costs can vary. After qualifying out-of-pocket costs reach the threshold, covered Part D drugs have no cost-sharing for the rest of the year.
Does my Medicare Advantage plan include Part D?
Most Medicare Advantage plans (called MAPD plans) include Part D drug coverage. If your plan does not include drug coverage, you would need a standalone Part D plan. We verify formulary coverage for your specific medications before enrollment.
What is a drug formulary and why does it matter?
A formulary is the list of drugs a Part D plan covers, organized into tiers that determine your cost. If your medication is not on the formulary, you may pay full price. We can help compare your medications' coverage and estimated costs across available plans, not just their premiums.
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