How it works
The Medicare Prescription Payment Plan is a voluntary option that every Medicare drug plan must offer. After you opt in, you pay $0 at the pharmacy for covered Part D drugs, and your plan bills you each month for the cost sharing you owe, spread over the rest of the calendar year. There are no fees and no interest.
What it does and does not do
| It does | It does not |
|---|---|
| Spread your out-of-pocket drug costs into monthly bills | Lower the price of your drugs |
| Cost nothing to join | Change your plan's premium or the $2,100 annual cap |
| Work with any Part D plan or Medicare Advantage plan with drug coverage | Carry over automatically if you switch to a different plan (you opt in again) |
Who may benefit
People with high drug costs, especially at the start of the year when deductibles and early fills are large, such as someone taking a costly brand-name drug. If your drugs cost little each month, the plan may not change much.
How to sign up
- Contact your Part D plan (the number is on your card) or sign in to the plan's website. You sign up with the plan, not at the pharmacy.
- You can opt in at any time during the year, but the earlier you join, the more months your costs are spread over.
- If you opted in last year and stay in the same plan, your plan renews you automatically. If you change plans, opt in again.
A simple example
If you start the year and your first fill costs you $600 out of pocket, joining early could mean about $50 a month for that fill rather than $600 at the counter. The same fill later in the year would be spread over fewer months, so the monthly amount is larger.