Medicare Prescription Payment Plan
The Medicare Prescription Payment Plan is a voluntary payment option provided by law. It works with your current drug coverage to help you manage your out-of-pocket Medicare Part D drug costs by spreading them across the calendar year (January–December). This payment option is available to anyone who has a Medicare Advantage plan that includes drug coverage. It doesn't save you money or lower your drug costs.
How does this plan calculate my monthly bill?
Your new costs
What you owe for any prescriptions you got this month.
Your previous balance
What you owed from the prior month.
Number of months left in the year
Your new balance is divided into equal payments over the remaining months.
Estimated monthly bill
This is your estimated payment amount.
In a single calendar year (January–December), you’ll never pay more than:
- The amount you would have paid if you weren’t participating in the payment plan
- The Medicare drug coverage annual out-of-pocket maximum ($2,400 in 2027)
Your payments may change every month as your balance changes. For instance, payments might increase if you fill a prescription and add new out-of-pocket costs to your balance with fewer months left to make your remaining payments.
Will this payment plan help me?
It depends on your situation. Remember, this payment option might help you manage your monthly expenses but doesn’t save you money or lower your drug costs. You’ll most likely benefit from participating in the Medicare Prescription Payment Plan if you have high drug costs earlier in the calendar year. Although you can start participating in this payment option any time in the year, starting earlier in the year (like before September) gives you more months to spread your drug costs out.
To determine if you can benefit from this plan, visit medicare.gov/prescription-payment-plan/will-this-help-me.
Ready to enroll?
Already enrolled?
For any questions or help with billing and payments, call Pharmacy Member Services at 888-970-0917.