The deductible is what you pay yourself before the plan starts paying its share. Many plans apply it only to higher drug tiers, so a generic may be covered from the first prescription while a brand-name drug is not. Two plans with the same $700 deductible can still cost you very different amounts depending on which tiers it applies to.
| Plan sets a deductible of | You pay first | Then |
|---|---|---|
| $0 | nothing | your copay from the first prescription |
| Partial, e.g. $250 | the first $250 of covered drugs | your copay or coinsurance |
| The maximum, $700 | the first $700 of covered drugs | your copay or coinsurance |
How it works
Each plan files its deductible with Medicare for the year. Once you have paid that amount toward covered drugs, the plan begins paying its share and you pay copays or coinsurance until your out-of-pocket total reaches the $2,400 cap. Plans commonly exempt the lowest tiers, which is why a plan with a high deductible can still be the cheaper plan for someone taking only generics.
What changes it
The maximum rises most years, and 2027 is a larger jump than usual: $85, from $615 to $700. The average deductible across Florida plans rose further than that, which is why a plan that charged nothing in 2026 may charge a deductible in 2027. That change will be in the Annual Notice of Change your plan sent by the end of September.
What to do next
Do not compare deductibles on their own. Price your own prescription list against each plan, because the tier your drug sits in usually matters more than the deductible. If you take only generics, a plan that exempts tier 1 and tier 2 may cost you nothing at the counter regardless of the deductible on paper.
Read the full guide: What is happening to Part D premiums in 2027
Related questions
Can a Part D plan charge more than $700?
No. $700 is the maximum any plan may charge as a deductible in 2027. Plans may charge less, including nothing.
Does everyone pay the deductible?
No. Plans often apply it only to higher drug tiers, and people who qualify for Extra Help generally pay no deductible at all.
Does the deductible count toward the out-of-pocket cap?
Yes. What you pay toward the deductible counts toward the $2,400 cap for the year.
Sources
- Costs for Medicare drug coverage — Medicare.gov (CMS) · read 2026-10-13
- Announcement of Calendar Year (CY) 2027 Medicare Advantage Capitation Rates and Part C and Part D Payment Policies — Centers for Medicare & Medicaid Services · read 2026-10-13
- Medicare Part D 2027 National Average Monthly Bid Amount Information — Centers for Medicare & Medicaid Services · 2026-07-28 · read 2026-10-12
This page explains published rules and figures, with the source for each one. It is not advice about your own situation.