Medicare Part D Cost 2027: Premiums, the $700 Deductible and What You'll Really Pay in a Year

Reviewed by Russell Noga, Licensed Medicare Insurance Broker (all 50 states) — Last updated October 27, 2026

A drug plan has four price tags: the premium, the deductible, pharmacy cost sharing and, for some people, an income surcharge or late penalty.

Readers ask us how much Part D costs per month and for a full year. Below are the 2027 CMS numbers, our own full-year calculations and a worked example that pairs a drug plan with a Medicare Supplement.

Premiums and copays vary by plan; the deductible and the cap are federal limits every plan must stay within.

Our main Medicare Part D guide explains how the program works and when you can enroll.

CMS announced on September 28, 2026 that the average total premium for a standalone prescription drug plan (PDP) is projected to rise from $35.09 to $36 a month. It also said 88% of people who don’t get Extra Help can buy a basic plan for $10.30 a month or less.

The average hides a big range. KFF’s October 2026 review of the 2027 market found:

The $41.33 base beneficiary premium is not what you pay. It’s a national benchmark, capped at 6% growth a year through 2029, that Medicare uses for the late penalty.

Once your premium is paid, Part D costs move through three stages in 2027:

What you pay toward the deductible counts toward the $2,400, as do Extra Help payments. Premiums don’t count.

We ran the 2027 standard benefit for four people. Assumptions: a $36 monthly premium ($432 a year), the full $700 deductible, 25% coinsurance after it, and the $2,400 cap. “Drug costs” means the full price of covered prescriptions before the plan pays.

The math on the second row: $700 deductible, plus 25% of the remaining $2,300 ($575), equals $1,275. In the standard design you reach the cap at about $7,500 of drug costs ($700 + 25% of $6,800). After that, a $40,000 year costs the same as a $7,500 year.

A Medigap policy and a drug plan do different jobs. Medigap policies sold since January 1, 2006 can’t include drug coverage, so if you buy a Medicare Supplement plan, Part D is a separate purchase with its own premium.

Drugs given in a doctor’s office, like many chemotherapy infusions, are usually covered by Part B, not Part D. Plan G pays their 20% Part B coinsurance after the Part B deductible.

Worked example (illustrative): a 65-year-old who buys Plan G and an average drug plan.

Medigap pricing is explained in our guide to Medicare Supplement plans cost.

If your income is above a set level, you pay an income-related monthly adjustment amount (IRMAA) on top of your plan premium. It goes to Medicare, not the insurer, and is usually withheld from your Social Security check. It’s based on the tax return from two years earlier, so 2027 amounts use your 2025 income.

As of November 1, 2026, CMS hasn’t published the 2027 IRMAA brackets; they’re normally released with the Part B premium in November. The 2026 Part D amounts, from CMS’s November 14, 2025 fact sheet:

Joint filers’ limits are double, with the top bracket at $750,000. After retirement or another life-changing event, you can ask Social Security to use a newer year.

If you go 63 days or more in a row without Part D or other creditable drug coverage after your Initial Enrollment Period, Medicare adds a penalty to your premium for as long as you have Part D. The formula is 1% of the national base beneficiary premium for each full month you went without coverage, rounded to the nearest $0.10.

Using the 2027 base premium of $41.33:

Re-shop every fall. Last year’s cheapest plan may not be now. Open Enrollment ends December 7, 2026. Our ranking of the best Medicare Part D plans compares the 2027 options.

Spread costs with the Medicare Prescription Payment Plan. This free option turns pharmacy costs into monthly bills. It doesn’t lower what you owe. If you enroll in January and hit the cap, your bill can’t go above roughly $200 a month ($2,400 ÷ 12).

Check Extra Help. Extra Help pays some or all of the premium, deductible and copays for people with limited income and resources. Anyone in Medicaid, Supplemental Security Income or a Medicare Savings Program qualifies automatically.

Use preferred pharmacies and generics. Both usually cost less under the same plan.

Free Medigap Price Comparison

Call a Licensed Agent Now

Compare Plan G, Plan N and more from several insurance companies in one call.

☎ 1-888-891-0229

No cost, no obligation to enroll