Part D · Prescription drug plans
Part D drug plans, without the guesswork.
Part D plans help pay for prescriptions. In 2027, what you pay out of pocket for covered drugs is capped at $2,400. The right plan depends on your exact drugs and the pharmacy you use.
- $2,400 yearly cap on covered drugs
- $35 a month for covered insulin
- Option to pay drug costs monthly
The basics
How Part D works
Part D is offered by private plans approved by Medicare. You can get it as a stand-alone plan alongside Original Medicare and Medigap, or as part of a Medicare Advantage plan that includes drug coverage.
Each plan has a formulary, its list of covered drugs, sorted into tiers. Your cost depends on the tier, whether you use a preferred pharmacy, and how much you’ve spent so far in the year.
Once your out-of-pocket spending on covered drugs reaches the yearly cap, you pay nothing more for covered drugs for the rest of the year.
Through the year
How your drug costs work
Deductible
You pay the full negotiated price until you meet your plan’s deductible, up to $700 in 2027. Many plans have a lower deductible or none on some tiers.
Initial coverage
You pay a copay or coinsurance for each covered prescription, and the plan pays the rest.
Catastrophic coverage
Once you’ve paid $2,400 out of pocket, you pay $0 for covered drugs for the rest of 2027.
Lower your costs
Ways to pay less for prescriptions
Use a preferred pharmacy
Many plans charge lower copays at preferred network pharmacies.
Check mail order
A 90-day supply by mail can cost less for drugs you take every day.
Ask about Extra Help
People with limited income and resources may qualify for Extra Help, which lowers premiums, deductibles and copays.
About Extra Help →Spread costs out
The Medicare Prescription Payment Plan lets you pay drug costs in monthly amounts instead of all at once at the pharmacy.
Ask about generics
Your doctor may be able to switch you to a lower-tier generic or preferred brand.
Review every fall
Formularies and prices change every year. A drug covered now may move tiers or drop off next year.
Avoid the late enrollment penalty
If you go 63 days or more in a row without Part D or other creditable drug coverage after you’re first eligible, a penalty may be added to your premium for as long as you have Part D. It’s 1% of the national base premium for each full month you went without coverage.
Getting an accurate quote
What we need to compare drug plans
- 1.The name of each drug
- 2.The dose and how often you take it
- 3.Whether you use the brand or the generic
- 4.Your pharmacy, and whether you’d use mail order
FAQ
Common questions
Do I need Part D if I don’t take any medications?
Many people still enroll in a low-cost plan to avoid the late enrollment penalty if they need drugs later. If you have other creditable drug coverage, such as from a current employer, you may not need it yet.
What counts toward the $2,400 cap?
Your deductible, copays and coinsurance for covered Part D drugs count. Premiums and drugs your plan doesn’t cover don’t count.
Is insulin covered?
Covered insulin costs no more than $35 for a one-month supply in Part D plans, and you don’t have to meet the deductible first.
Can I change my Part D plan?
Yes, during Annual Enrollment, October 15 to December 7. People with Extra Help or Medicaid may be able to change more often.
What is Extra Help?
Extra Help is a Medicare program that helps people with limited income and resources pay Part D premiums, deductibles and copays. You can apply through Social Security, and people with Medicaid get it automatically.
Find the drug plan that costs you least.
Send us your prescriptions and pharmacy. We’ll compare the yearly total, not just the premium.