Each year the Centers for Medicare and Medicaid (CMS) updates the Part D deductible and out-of-pocket maximums. Below we highlight details around what may be changing for Part D deductibles and out-of-pocket maximums in 2027.
What Part D changes may affect my Medicare plan?
The coverage stages have not changed. This includes the Annual Deductible, Initial Coverage and Catastrophic Coverage. You will see a change from the previous out-of-pocket maximum.
What is the maximum out-of-pocket for Part D in 2027?
The 2027 out-of-pocket maximum is $2,400. Your out-of-pocket maximum is based on the total amount you or someone on your behalf pay out-of-pocket for covered Part D prescription drugs. These qualifying expenses are your True Out-of-Pocket costs (TrOOP).
What happens to my Medicare Part D True Out-of-Pocket costs if I change my plan?
If you qualify and choose to change your stand-alone Part D or Medicare Advantage Prescription Drug coverage mid-year, the amount you or others on your behalf have paid toward your True Out-of-Pocket (TrOOP) costs will transfer with you to your new plan. The TrOOP amount carried over will determine which coverage stage (Deductible, Initial, Catastrophic) you will be in once your coverage transfers.
For example:
If the new plan has a deductible and the TrOOP amount transferring over is greater than that amount, you would be in the Initial coverage stage until your TrOOP reaches the $2,400 out of pocket maximum set by CMS. This applies when switching carries and when switching your plan under the same carrier. Keep in mind, out of pocket spend amounts for most Part D plans reset January 1.
What’s a Part D prescription drug deductible?
First, it’s important to understand what a deductible is. Your deductible is a pre-set amount that you or others on your behalf pay for your covered prescription drugs first, before Medicare or other insurance starts to pay. This amount can be found on your insurance policy and/or Annual Notice of Change letter. For 2027, that amount is $700. Not all Part D plans will have a deductible and the amount you pay may depend on the drug tier. Check with your plan provider for your specific plan details.
You can count on UnitedHealthcare to provide reliable information about Medicare Part D prescription drug coverage now and in the future.
Additional Part D resources and materials
The following resources and materials are available for you to explore and get more in-depth information about Medicare Part D coverage.
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