How to Choose the Best Medicare Part D Plan for 2027

Reviewed November 6, 2026. The best Medicare Part D plan for 2027 is the one that covers all your drugs at the lowest total yearly cost, at a pharmacy you can use, not simply the plan with the lowest premium. In 2027, no Part D plan can have a deductible above $700, and your out-of-pocket drug costs are capped at $2,400 for the year. Compare plans on Medicare’s Plan Finder during Open Enrollment, October 15 to December 7, 2026.

Quick answer: Enter your exact drugs, doses and pharmacy at Medicare.gov/plan-compare, sort plans by “lowest drug + premium cost,” then check each finalist’s deductible, star rating and pharmacy network. Because 15 more negotiated drug prices (including Ozempic, Wegovy and Trelegy Ellipta) take effect January 1, 2027, rerun the comparison even if you are happy with your current plan.

Part D in 2027: the numbers that matter

Two more 2027 changes: CMS is ending the Part D premium stabilization demonstration after 2026 (“CMS will discontinue the demonstration at the end of CY 2026”), so some stand-alone plan premiums may move more than in 2025 and 2026. And the national average monthly bid for 2027 is $296.05, which drives how premiums are set. For a wider summary, see Medicare changes for 2027.

How to choose a Medicare Part D plan in 7 steps

1. Make an exact list of your drugs

Write down every prescription with its name, strength, dose and how often you take it. Plan Finder prices are only as good as this list. Include drugs you expect to start in 2027 if your doctor has mentioned them.

2. Check each plan’s formulary and drug tiers

Every plan has its own drug list (formulary) and puts drugs on cost tiers. Medicare’s compare drug coverage guide tells you to check whether your drugs are on the plan’s formulary and to look at rules such as prior authorization, step therapy and quantity limits. A drug on a lower tier with no restrictions usually costs less and causes fewer problems at the pharmacy.

3. Compare total yearly cost, not just premium

A $0 or low-premium plan can cost more over a year if your drugs are on high tiers or subject to the deductible. Plan Finder estimates your total yearly drug costs plus premiums for each plan; sort by that number. With the $2,400 cap in 2027, people who take expensive brand-name drugs will hit the cap in any plan, so for them the premium and pharmacy convenience matter more. People on a few low-cost generics should focus on premium and generic copays.

4. Look at the deductible

Plans can charge up to $700 before coverage starts in 2027, but many charge less or exempt cheaper tiers. Medicare suggests you “look for plans with a low or no deductible” if you want to spread costs across the year. Insulin is never subject to the deductible.

5. Confirm your pharmacy is in network (and preferred)

Medicare’s guide says, “Check that your favorite pharmacy is in the network.” Many plans have preferred pharmacies with lower copays, and mail-order pricing can be cheaper for maintenance drugs. Add your pharmacy in Plan Finder so prices reflect it.

6. Check the star rating

Star ratings (1 to 5) measure customer service, member complaints, drug pricing accuracy and safety. For 2027, CMS rated 41 stand-alone drug plans and none earned 5 stars; the enrollment-weighted average for stand-alone drug plans is 3.22 stars (CMS 2027 Star Ratings fact sheet). Use stars as a tiebreaker between plans with similar costs.

7. Decide: stand-alone Part D or Medicare Advantage with drug coverage

If you have Original Medicare (with or without a Medigap policy), you need a stand-alone Part D plan. If you choose a Medicare Advantage plan, drug coverage is usually built in (MA-PD), and you can’t add a separate Part D plan to most of them. CMS projects the average MA-PD drug premium will fall to $7 a month in 2027, while stand-alone plans average about $36. Learn how the coverage stages work in Part D drug coverage phases and how Part D works.

Negotiated drug prices starting January 1, 2027

Medicare says, “Prices for the next 15 drugs that Medicare negotiated under Part D take effect on January 1, 2027” (Your Medicare in 2027). CMS’s negotiated price fact sheet lists these 30-day prices compared with 2024 list prices:

Help paying for Part D in 2027

• Extra Help: if you qualify, you pay a $0 plan premium (for a benchmark plan) and, in 2027, up to $5.80 for each generic and $14.40 for each brand-name drug. The 2026 limits were income of $23,940 (single) or $32,460 (married) and resources of $18,090 or $36,100. Apply through Social Security.
• Medicare Prescription Payment Plan: spreads your out-of-pocket drug costs into monthly payments. It’s free to join, but Medicare notes it “doesn’t save you money or lower your drug costs” (Medicare.gov).
• Discount cards: you can sometimes pay a cash price with a discount card instead of using Part D, but that spending won’t count toward your deductible or cap. See can you use GoodRx with Medicare.

Don’t skip Part D if you have no other drug coverage

If you go 63 days or more without Part D or other creditable drug coverage after your Initial Enrollment Period, you may pay a late enrollment penalty for as long as you have Part D. Medicare calculates it by “multiplying 1% times the ‘national base beneficiary premium'” by the number of full months you went without coverage. The base premium is $41.33 for 2027. Details: Part D late enrollment penalty.

When you can change Part D plans

• Open Enrollment: October 15 to December 7, 2026, for coverage starting January 1, 2027.
• Medicare Advantage Open Enrollment: January 1 to March 31, if you’re in a Medicare Advantage plan (one change).
• Special Enrollment Periods: for example if you move, lose other coverage, qualify for Extra Help, or want to join a 5-star plan (once between December 8 and November 30).

Read your plan’s Annual Notice of Change (mailed by September 30) to see how your current plan’s premium, deductible and formulary change for 2027. For Part A and Part B costs, see 2026 Medicare costs and IRMAA; higher-income enrollees also pay a Part D IRMAA surcharge.

Frequently asked questions

What is the best Medicare Part D plan for 2027?

There is no single best plan. The best plan for you covers all your drugs at the lowest total yearly cost (premium plus copays) at your pharmacy. Plan Finder ranks plans by that total once you enter your drugs.

What is the Part D out-of-pocket maximum in 2027?

$2,400. After your out-of-pocket spending on covered Part D drugs reaches $2,400, you pay nothing more for covered drugs for the rest of 2027. It was $2,100 in 2026.

What is the Part D deductible for 2027?

Plans can charge up to $700 in 2027, up from $615 in 2026. Many plans charge less or apply the deductible only to higher tiers.

Should I pick the cheapest Part D premium?

Only if it also covers your drugs well. A low premium can be outweighed by higher copays, a full deductible or a drug that isn’t on the formulary.

Do I need to compare plans every year?

Yes. Premiums, formularies, tiers and pharmacy networks change every January. For 2027, the end of the premium stabilization demonstration and new negotiated drug prices make comparing especially worthwhile.

This article is general information. Medicare365 is an independent website and is not affiliated with or endorsed by Medicare, CMS or any insurance company. Plan costs and coverage vary by plan and area; confirm details on Medicare.gov or in the plan’s documents.

Sources

• Medicare.gov: costs for Medicare drug coverage
• CMS: CY2027 Part D national average bid and base beneficiary premium (PDF)
• CMS: Medicare Advantage and Part D programs expected to remain stable in 2027
• CMS: negotiated prices for initial price applicability year 2027 (PDF)
• Medicare.gov: Your Medicare in 2027 (PDF)
• Medicare.gov: compare Medicare drug coverage (PDF)
• CMS: 2027 Star Ratings fact sheet (PDF)
• Medicare.gov: insulin
• Medicare.gov: Extra Help with drug costs
• Medicare.gov: Medicare Prescription Payment Plan
• Medicare.gov: understanding enrollment periods (PDF)