Medicare Prescription Drug Payment Plans

Beginning in 2025, the prescription drug law, known as the Inflation Reduction Act, requires all Medicare prescription drug plans (Medicare Part D plans) — including both standalone Medicare prescription drug plans and Medicare Advantage plans with prescription drug coverage — to offer enrollees the option to pay out-of-pocket prescription drug costs in the form of capped monthly payments instead of all at once at the pharmacy. 
This does not lower the price of any specific medication but does allow Medicare Part D members with expensive medications to pay for their prescriptions with monthly payments. Program participants will pay $0 to the pharmacy for covered Part D drugs, and Part D plan sponsors will then bill program participants monthly for any cost-sharing they incur while in the program

Who is likely to benefit from the Medicare Prescription Payment Plan?

This program is available to anyone with Medicare Part D, but enrollees with high cost sharing earlier in the plan year are more likely to benefit from the program. ​Being able to pay high cost sharing amounts in the form of monthly payments instead of all at once to the pharmacy will improve access to — and affordability of — prescription drugs for some people with Medicare Part D.  
Please note: ​For Medicare enrollees with Part D who are eligible for the Low-Income Subsidy (LIS) (also known as Extra Help), enrollment in Extra Help is more advantageous than the Medicare Prescription Payment Plan. 

For mor information on the Medicare Prescription Payment Plans, please click the button below to be directed to CMS.gov

Medicare Prescription Payment Plan