CMS finalized higher Medicare Part D defined-standard amounts for 2027. Here is a quick year-by-year comparison; your actual plan’s premium, formulary, pharmacy network, and cost sharing can differ.
| Calendar year | Maximum defined-standard deductible | Annual out-of-pocket threshold |
|---|---|---|
| 2026 | $615 | $2,100 |
| 2027 | $700 | $2,400 |
The annual threshold applies under Medicare’s Part D out-of-pocket rules for covered drugs. After reaching the applicable threshold, you pay no cost sharing for covered Part D drugs for the rest of that calendar year. Premiums, non-covered drugs, and plan-specific terms are separate.
If you are reviewing coverage during AEP 2026, changes take effect January 1, 2027. Compare the plan’s current formulary, pharmacy network, deductible, and total expected costs rather than relying on the annual threshold alone.
Read our detailed Part D out-of-pocket guide for how the limit works, or visit our Part D Guide. Official source: CMS Calendar Year 2027 Rate Announcement, Attachment V.
Informational purposes only. This is general education, not insurance, legal, or financial advice or a coverage determination. Individual plan premiums, coverage, formularies, and costs vary. Price Services Group is not connected with or endorsed by the U.S. government or the federal Medicare program. We do not offer every plan available in your area. Contact Medicare.gov or 1-800-MEDICARE for a complete view of your options.