Medicare Part D · 2027 figures
Is there still a donut hole in 2027?
Short answer: no. The coverage gap ended January 1, 2025. Here is how Part D actually works now, what you pay at each stage, and how to pick a drug plan for 2027.
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The direct answer
There is no donut hole in 2027. The coverage gap, where you once paid a large share of drug costs in the middle of the year, was eliminated on January 1, 2025. If someone tells you to plan around the donut hole, their information is out of date.
What replaced it is simpler and better for people with high drug costs: a hard yearly cap. In 2027, once your out-of-pocket spending on covered Part D drugs reaches $2,400, you pay nothing for covered drugs for the rest of the year.
How Part D works now: three stages
- 1
Stage 1: Deductible
You pay the full cost of your covered drugs until you have spent the plan's deductible. For 2027, no Part D plan may set its deductible above $700. Many plans set it lower, and some charge no deductible on lower-cost drug tiers.
- 2
Stage 2: Initial coverage
After the deductible, you pay your plan's share for each prescription: a copay or coinsurance based on the drug's tier. This is the stage most people spend most of the year in.
- 3
Stage 3: Catastrophic coverage
Once your out-of-pocket spending on covered drugs reaches $2,400 in 2027, you enter catastrophic coverage and pay nothing for covered drugs for the rest of the year. This is what replaced the old coverage gap.
Source: CMS Part D announcements for 2027. The $700 deductible is a maximum; plans may set it lower. The $2,400 cap applies to covered drugs.
Picking a 2027 drug plan
The premium is the least important number on a Part D plan. What matters is what your drugs cost under it. Every plan has its own list of covered drugs, its own tiers, and its own prices, and every one of those can change on January 1.
Bring a list of your prescriptions, with dosages, and the pharmacy you prefer. We will check each drug against the 2027 plans and find the one where your actual yearly cost is lowest. It takes about twenty minutes and it is free. See everything changing for 2027.
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Questions people ask me about Part D
- Is there still a donut hole in 2027?
- No. The coverage gap known as the donut hole was eliminated on January 1, 2025. Part D now has three stages: deductible, initial coverage, and catastrophic coverage, with a $2,400 yearly cap on what you pay out of pocket for covered drugs in 2027.
- How does Part D work now?
- You pay up to the deductible first (no more than $700 in 2027), then copays or coinsurance during initial coverage, and once your out-of-pocket spending hits $2,400, covered drugs cost you nothing for the rest of the year. No gap in the middle anymore.
- What is the 2027 Part D deductible and out-of-pocket cap?
- The maximum deductible is $700, up from $615 in 2026. The out-of-pocket cap is $2,400, up from $2,100 in 2026. Both figures are set by CMS; individual plans can set a lower deductible but cannot exceed the maximum.
- What changed from 2026?
- The deductible maximum rose from $615 to $700, and the out-of-pocket cap rose from $2,100 to $2,400. If you take expensive brand-name drugs, the cap is the number that protects you, and it still applies in full.
- How do I pick a Part D plan for 2027?
- Ignore the premium first. Make a list of every drug you take, with dosages, then check which tier each drug sits on and what it costs at your pharmacy. Drug lists and prices change every year, so last year's best plan may not be this year's. A free review walks through your list against the 2027 options.
Christian BrinkleyNC Life & Health · Greensboro, NC
Let's check your drugs for 2027
Bring your prescription list. We will compare what your drugs cost across the 2027 Part D options and find the lowest total for you. Free, no obligation. Call or text (919) 408-6671.
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