1. Part D Out-of-Pocket Prescription Drug Cap Rises to $2,400

Starting January 1, 2027, the statutory annual out-of-pocket spending cap on prescription drugs increases to $2,400. This threshold represents an inflation adjustment required under the Inflation Reduction Act.

The spending limit originally took effect at $2,000 in 2025 before adjusting to $2,100 in 2026. Once your cumulative prescription spending hits $2,400 in 2027, your covered Part D medications cost $0 for the rest of the year.

This cap shields you from catastrophic expenses if you take expensive specialty drugs. However, you must budget for the $300 annual increase over 2026 spending limits.