A Medicare drug plan that worked perfectly well in 2026 isn’t automatically the best deal for 2027. Premiums can change, prescriptions can move to different formulary tiers, pharmacy arrangements can shift, and Medicare’s standard Part D cost parameters are changing next year. That matters because the plan with the cheapest monthly premium isn’t necessarily the plan that leaves the most money in your pocket after 12 months of prescriptions. Medicare Open Enrollment runs from October 15 through December 7, and changes selected during that period generally take effect January 1. Before deciding to keep your current Medicare drug plan for 2027, check these six details against the medications you actually take.
1. Check What Your Plan Will Charge You Each Month
Start with the number most people notice first: the monthly premium. CMS projects that the average total premium for stand-alone Part D plans will rise by less than $1, from $35.09 in 2026 to about $36 in 2027, but that’s a national average rather than a promise about your particular plan. In fact, CMS says 88% of beneficiaries who don’t receive the Low-Income Subsidy will have access to a basic Part D plan costing $10.30 or less, illustrating how widely your choices can differ. Your own plan’s premium could rise, fall, or remain roughly the same depending on the plan and where you live. Instead of asking whether your premium changed by a few dollars, compare the projected total annual cost of each Medicare drug plan for 2027 using your actual prescriptions.
2. See Whether Your Prescriptions Are Still on the Formulary
Next, check every medication you take against the plan’s 2027 formulary, which is its list of covered drugs. Medicare explains that formularies can include brand-name drugs, generics, original biological products, and biosimilars, but individual plans have flexibility over many of the specific drugs they cover. Don’t stop when you see that a medication remains listed because its tier can matter almost as much as whether it’s technically covered. A drug that moves to a higher tier may come with a larger copayment or coinsurance requirement, potentially turning an inexpensive monthly prescription into a significant annual expense.
There’s another 2027 change worth checking if you take an expensive brand-name medication: Medicare-negotiated prices for a second group of 15 Part D drugs take effect January 1. Medicare explains that beneficiaries should contact their plans to determine how the negotiated prices may affect what they pay. That makes entering your exact medications into Plan Compare particularly important this year rather than assuming your 2026 prescription costs will simply carry over into 2027.
3. Check the Deductible Because the Standard Amount Is Rising
One of the most important 2027 numbers is easy to overlook if you’re focused only on premiums. According to CMS’s 2027 Medicare payment announcement, the defined standard Part D deductible increases from $615 in 2026 to $700 in 2027. Individual plans can structure their benefits differently, so that doesn’t mean every beneficiary will automatically pay a $700 deductible before receiving any prescription coverage. Still, you need to check your specific Medicare drug plan for 2027 to see what deductible applies and which medications, if any, are covered before you meet it. For someone living on a fixed retirement income, knowing whether several hundred dollars could be due early in the year is important cash-flow planning, not just an insurance detail.
4. Don’t Assume Your Current Pharmacy Will Still Be the Cheapest
You may have filled prescriptions at the same pharmacy for years, but loyalty can become expensive when Medicare plan contracts change. Medicare explains that Part D plans have networks and that some designate certain locations as “preferred in-network pharmacies,” where members may pay lower copayments or coinsurance. An in-network pharmacy can therefore still cost more than a preferred in-network location under the same plan, while using an out-of-network pharmacy can sometimes leave you paying the full cost. Compare your preferred local pharmacy, another nearby location, and any mail-order option the plan offers for maintenance prescriptions. Saving even $10 a month across several prescriptions can matter more financially than choosing another plan simply because its premium is a few dollars lower.
5. Know That the Out-of-Pocket Threshold Is Changing Too
The redesigned Part D benefit limits beneficiary out-of-pocket spending on covered Part D drugs, but the threshold isn’t staying frozen. CMS says the annual Part D out-of-pocket threshold rises from $2,100 in 2026 to $2,400 in 2027, a $300 increase under the defined standard benefit. That deserves particular attention from people taking expensive medications who are likely to reach the threshold during the year. It also makes checking whether every expensive prescription you take is actually covered by the plan particularly important, because simply having Part D doesn’t make every medication count toward the limit. When comparing a Medicare drug plan for 2027, look at projected annual spending based on your actual medications rather than assuming the existence of an annual threshold makes every plan financially equivalent.
Beneficiaries struggling with prescription costs should also check whether they qualify for Medicare Extra Help, which in 2027 provides qualifying beneficiaries with a $0 plan premium and $0 deductible and limits copays for covered prescriptions at participating pharmacies.
6. Read the Annual Notice of Change Before You Automatically Renew
If you already have Medicare drug coverage, your plan should have sent an Annual Notice of Change, commonly called an ANOC, in September. Medicare says this document explains changes to costs, coverage, and other plan details that will take effect in January, and beneficiaries who didn’t receive one should contact their plan. Put your 2026 costs beside the 2027 figures and specifically mark changes to premiums, deductibles, copays, coinsurance, and prescription coverage that affect you. Then enter your current medications and pharmacies into Medicare’s Plan Compare tool rather than comparing plans on premium alone. The practical question isn’t whether your current plan still exists; it’s whether it remains the lowest-cost reasonable option for the healthcare you expect to use.
December 7 Is the Deadline That Makes This Review Matter
You don’t need to switch Medicare plans simply because another Open Enrollment season has arrived. You do need to verify that staying put is an informed financial decision, especially with the standard Part D deductible and out-of-pocket threshold both changing in 2027. Medicare’s Open Enrollment period runs from October 15 through December 7, with coverage changes taking effect January 1.
Set aside your medication list, Annual Notice of Change, and pharmacy information and compare the full projected annual cost of your Medicare drug plan for 2027 before that deadline arrives. For someone enrolled in a plan that applies the full standard deductible, that’s an $85 increase from 2026, making it worth setting aside additional money for prescription costs early in the year rather than being surprised at the pharmacy counter in January.
Have you checked your 2027 Medicare drug coverage yet, and did you find any changes that could increase or lower what you spend next year?
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