Medicare Part D Out-of-Pocket Cap Drops to $2,400 in 2027

Starting 2027, the Part D out-of-pocket cap drops to $2,400, after which covered prescriptions cost nothing. This structural change converts unpredictable drug costs into a known ceiling, important for retiree budgeting. Annual indexing applies. The cap is a result of the Inflation Reduction Act and will significantly reduce financial risk for beneficiaries with high drug costs.