Medicare D
How Medicare Part D drug coverage works, the 2026 and 2027 deductible and cap, ways to spread costs, and a calculator for your yearly drug costs.
Medicare D out-of-pocket calculator
How Medicare D works
Medicare Part D is prescription drug coverage from private plans, either a stand-alone drug plan alongside Original Medicare or built into a Medicare Advantage plan. You pay a monthly premium, then a deductible, then coinsurance or copays.
2026 and 2027 costs
- Deductible: no more than $615 in 2026 ($700 in 2027); some plans have none.
- Out-of-pocket cap: once you've spent $2,100 on covered drugs in 2026 ($2,400 in 2027), you pay nothing more for covered drugs that year (Medicare.gov). The old coverage gap is gone.
- Insulin is capped at $35 a month, and recommended adult vaccines are free.
- The Medicare Prescription Payment Plan lets you spread out-of-pocket costs over the year in monthly bills instead of paying at the pharmacy.
Don't skip it
If you go 63 days or more without creditable drug coverage after your initial enrollment, you'll pay a late penalty for life: see Medicare enrollment. Open enrollment for 2027 runs October 15 to December 7, 2026.
Common questions
What is the Medicare Part D out-of-pocket maximum for 2026?
$2,100, rising to $2,400 in 2027.
What is the highest Part D deductible?
$615 in 2026 and $700 in 2027.
Is there a Part D late penalty?
Yes, 1% of the national base premium for each month you went without coverage, for life.
Sources
More retirement calculators: Maximum Social Security Benefit
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.