Medicare Part D 2027: what will my drugs cost?

As of Oct. 16, 2026

2026 vs 2027 Medicare drug coverage numbers

Sources: Medicare.gov Part D costs · CMS July 28, 2026 fact sheet · CMS Sept. 28, 2026 release · Medicare.gov insulin. CMS also projects 88% of people without low-income help can get a basic stand-alone plan for $10.30 a month or less. The 2027 Part B premium and deductible had not been announced when we checked (Medicare.gov still lists 2026's $202.90 and $283).

Medicare Prescription Payment Plan: spread the cost

• Every Part D and Medicare Advantage drug plan must offer it. It's voluntary and free: no fees and no interest, even if you pay late.
• You stop paying the pharmacy for covered drugs and get a monthly bill from your plan, separate from your premium.
• The formula is the same in every plan: first month, the lesser of that month's costs or ($2,400 minus what you've already paid this year) ÷ months left; after that, (unpaid balance + new costs) ÷ months left, counting the current month.
• Most useful with high costs early in the year. Medicare says it may not be the best choice if your costs are low or level, you'd join after September, or you get Extra Help or a Medicare Savings Program.
• Miss a bill and the plan must give you a grace period of at least two months before removing you; you still owe the balance (all at once or monthly), and you keep your drug coverage.
• It renews each year unless you opt out or change plans. Switching plans ends it, so sign up again with the new plan.

“Your monthly bill is based on what you would have paid for any prescriptions you get, plus your previous month’s balance, divided by the number of months left in the year.” — Medicare.gov

Sources: Medicare.gov Payment Plan fact sheet · 42 CFR 423.137

Late enrollment penalty in 2027

• You may owe it if, after your first chance to join, you went 63 or more days in a row without Part D or other creditable drug coverage (coverage at least as good as Medicare's, like many employer or VA plans).
• Penalty = 1% × $41.33 × full months without coverage, rounded to the nearest 10 cents, added to your premium every month you have drug coverage, even if you switch plans.
• The base premium can change every year, so the penalty can too. People with Extra Help don't pay it. You can ask for a reconsideration if you think it's wrong.

Sources: Medicare.gov Part D costs · CMS July 28, 2026 fact sheet

15 drugs with Medicare negotiated prices from Jan. 1, 2027

These are the prices Medicare drug plans pay for a 30-day supply, not your copay. Your share depends on your plan, but coinsurance is figured on a lower price, and every Part D plan must include these drugs on its list.

CMS: about 5.3 million of 53 million Part D enrollees used these drugs in 2024 and paid $1.7 billion out of pocket; CMS estimates enrollees would save about $685 million in 2027 under the standard benefit. These 15 join 10 drugs whose negotiated prices started in 2026. Ozempic package example: $276.78 for a 4 mg/3 mL pen. Source: CMS 2027 negotiated prices

Why trust this: every number links to the CMS or Medicare.gov document it comes from, with the date we read it. The Payment Plan math reproduces Medicare's own 2027 example to the cent, and the state numbers come straight from CMS's 2027 state fact sheets.

Not insurance advice. We republish CMS and Medicare.gov figures with dates and do the arithmetic on what you type. Free, unbiased help: your State Health Insurance Assistance Program (SHIP) or 1-800-MEDICARE.

Sources & as-of dates

• Medicare.gov: How much does Medicare drug coverage cost? (2026 and 2027 limits, late penalty) (read Oct. 16, 2026; checked 2026-10-16)
• CMS: Medicare Part D 2027 National Average Monthly Bid Amount Information (base beneficiary premium $41.33) (July 28, 2026; checked 2026-10-16)
• CMS: Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027 (Sept. 28, 2026; checked 2026-10-16)
• CMS: 2027 Medicare Advantage and Part D Landscape state-by-state fact sheets (Sept. 2026; checked 2026-10-16)
• Medicare.gov publication 12211: What's the Medicare Prescription Payment Plan? (2027 examples) (read Oct. 16, 2026; checked 2026-10-16)
• 42 CFR 423.137: Medicare Prescription Payment Plan (eCFR as of Oct. 1, 2026; checked 2026-10-16)
• CMS: Negotiated Prices for Initial Price Applicability Year 2027 (15 drugs) (fact sheet; prices effective Jan. 1, 2027; checked 2026-10-16)
• Medicare.gov: Insulin coverage and the $35 limit (read Oct. 16, 2026; checked 2026-10-16)
• Medicare.gov: Medicare costs (Part B amounts still listed for 2026) (read Oct. 16, 2026; checked 2026-10-16)