Medicare Part D changes for 2027: how to spot them in your notice

Last reviewed July 2026

CMS finalized the Medicare drug-benefit rules for 2027 in April 2026. Two numbers change for every Part D and Medicare Advantage drug plan, and your parent’s Annual Notice of Change is where the plan-specific version of each one shows up.

The standard deductible is rising

CMS’s CY 2027 Rate Announcement sets the defined standard Part D deductible at $700 for 2027, up from $615 in 2026. This is the ceiling: no Medicare drug plan may charge a deductible higher than this amount, though many plans set theirs lower or have none at all. Look for the deductible line in the ANOC’s cost comparison table.

The out-of-pocket cap is rising too

The same announcement sets the annual out-of-pocket threshold, the point at which a plan member stops paying for covered drugs for the rest of the year, at $2,400 for 2027, up from $2,100 in 2026. Once your parent’s out-of-pocket drug spending reaches that amount for the year, covered prescriptions cost nothing for the rest of the calendar year.

The coverage gap phase is gone for good

CMS’s final rule for 2027 makes permanent the redesign that started phasing in a few years ago: it codifies eliminating the coverage gap phase (once known as the “donut hole”), and it removes cost sharing once a member reaches the catastrophic phase. In practice, the standard Part D benefit is now just deductible, then coinsurance, then $0, with no middle gap where costs used to jump.

Where to look in the notice

An ANOC states your parent’s own plan’s deductible, premium, and drug tiers, which can be higher or lower than the standard amounts above depending on the plan. The two things worth comparing year over year are the deductible line and whichever drug tiers your parent’s medications sit in, since a drug moving to a higher tier changes what it costs well before the out-of-pocket cap is reached.

Whether any of this makes a plan still worth keeping is a personal decision. We do not make it for you and we do not compare plans. For personalized, unbiased help, Medicare’s official Plan Finder and your State Health Insurance Assistance Program (SHIP) are free and independent.

NoticeOfChange explains what your parent’s notice says and organizes the deadlines. We are not insurance agents or advisors, we do not recommend or compare plans, and we are not affiliated with Medicare or CMS.

Sources

• CMS, Announcement of Calendar Year (CY) 2027 Medicare Advantage Capitation Rates and Part C and Part D Payment Policies (Table V-6, the $700 deductible and $2,400 out-of-pocket threshold)
• CMS, Contract Year 2027 Medicare Advantage and Part D Final Rule fact sheet (the coverage gap elimination and $0 catastrophic cost sharing)
• Medicare.gov, how much does Medicare drug coverage cost (the 2026 deductible and out-of-pocket threshold, for comparison)