Medicare Part D costs to rise with higher deductibles and premiums

Medicare beneficiaries face several cost increases regarding prescription drug coverage. The Centers for Medicare & Medicaid Services has confirmed that the maximum Part D deductible will rise from $615 in 2026 to $700 in 2027. Additionally, the annual cap on out-of-pocket expenses for Part D drugs is set to increase to $2,400, up from $2,100 in 2026.

During the current open enrollment period, which runs from October 15 through December 7, enrollees may see higher monthly premiums. Research from KFF indicates that members in United AARP-branded Part D plans could see monthly premium increases of $50 or more in all 50 states if they do not switch plans. In 37 states, these increases are expected to exceed $75 per month.

Further impacting costs is the conclusion of a temporary Part D premium subsidy. This subsidy, originally implemented in 2024 to mitigate the effects of the Inflation Reduction Act, is being ended by the Trump administration.