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Manage your monthly drug costs with the Medicare Prescription Payment Plan

Are you struggling to deal with high prescription drug costs? This new program can help.

Introducing the Medicare Prescription Payment Plan

The Medicare Prescription Payment Plan is a new payment option that works with your current drug coverage. It can help you manage out-of-pocket Medicare Part D drug costs by spreading them across the calendar year (January– December).

Starting in 2025, anyone with a Medicare drug plan or Medicare health plan with drug coverage (like a Medicare Advantage Plan with drug coverage) can use this payment option for drugs covered by Part D.  All plans offer this payment option and participation is voluntary.

How it works

If you select this payment option, you will continue to pay your plan premium (if you have one) and you will receive a bill from Select Health Medicare  to pay for your prescriptions drugs (instead of paying the pharmacy).

There’s no cost to participate in the Medicare Prescription Payment Plan, and you won’t pay any interest or fees on the amount you owe, even if your payment is late.

Review the fact sheet
Review the fact sheet (Español)

More details on the Medicare Prescription Payment Plan

You won't pay your pharmacy copay when you pick up your medication (including at mail order and specialty pharmacies). Instead, you’ll get a bill each month from Select Health Medicare. Your monthly bill is based on what you would have paid for any prescriptions you get, plus your previous month’s balance, divided by the number of months left in the year.

Review bill calculation details

The prescription drug law caps your out-of-pocket costs at $2,000 in 2025 . This means you’ll never pay more than $2,000 in out-of-pocket drug costs in 2025 . This is true for everyone with Medicare drug coverage, even if you don’t join the Medicare Prescription Payment Plan.

Future payments might change every month, so you may not know what your exact bill will be ahead of time. Future payments may increase as you fill new prescriptions  or refill an existing prescription, this is because new out of pocket drug costs get added to your monthly payment, there are few months left in the year to spread out your remaining payments.

Even though you won’t pay for your drugs at the pharmacy, you’re still responsible for the costs. If you want to know what your drug will cost before you take it home, call your plan or ask the pharmacist.

Is this payment option right for me?

This payment option may be a good option for you if:

  • Your yearly drug costs are high
  • Your out-of-pocket costs for prescription drugs are over $2,000 per year
  • Your drug costs vary from month-to-month
  • Your drug costs are higher earlier in the year

This payment option may not be a good option for you if:

  • Your yearly drug cost are low.
  • Your drug costs are the same each month
  • You are considering signing up for the payment option late in the Calendar year.
  • You do not want to change how you pay for your drugs.
  • You get or are eligible for Extra Help from Medicare.

Will this payment plan save me money?

No. This payment option is intended to help manage monthly expenses, but it won’t save you money or lower your drug costs. Visit Medicare.gov/basics/costs/help/drug-costs to learn more about the programs that are available to help you lower your drug costs.

If you need more help managing your drug costs, consider applying for the Low-Income Subsidy (LIS) program, also known as the “Extra Help” program. LIS is a Medicare program to help people with limited income and resources pay Medicare drug coverage (Part D) premiums, deductibles, coinsurance, and other costs. If you have applied for this program before 2024 and did not get approved, we encourage you to re-apply. Starting on January 1, 2024, Medicare expanded the LIS program to individuals with incomes up to 150% of the federal poverty level and who meet certain resource requirements. LIS enrollment, for those that qualify, is likely to be more advantageous than participation in the Medicare Prescription Payment Plan.

Visit Medicare.gov to learn more about the programs that are available to help you lower your drug costs.

Your right to file a grievance

If you disagree with our decision, you may file a grievance. You may request a grievance verbally or in writing by contacting us at:

Phone: 844-208-9012
Email: appeals@imail.org
Fax: 801-442-0762
Mail: Select Health Attn: Appeals & Grievances Department
P.O. Box 30196
Salt Lake City, UT 84130-0196

Appeals and Grievances page

Can I join the program retroactively?

We will allow you to make a retroactive election. In the case of a retroactive election all the following conditions must be met:

  • The Part D enrollee believes that any delay in filling the prescription(s) due to the 24 hours timeframe required to process their request to opt in may seriously jeopardize their life, health, or ability to regain maximum function; and
  • The Part D enrollee requests retroactive election within 72 hours of the date and time the urgent claim(s) were adjudicated.

Once your Medicare Prescription Payment Plan election has been effectuated, we will process a reimbursement for all cost sharing you paid for the urgent prescription and any covered Part D prescription filled between the date of adjudication of the urgent claim and the date that your election is effectuated within 45 calendar days of the election date.

How do I pay my bill?

Once you’ve joined the Medicare Prescription Payment Plan you will receive a letter from Select Health with information about paying your monthly bill. You need to pay your bill in a timely manner to stay in the program. You’ll get a reminder from us if you miss a payment. If you don’t pay your bill by the date listed in that reminder, you’ll be removed from the Medicare Prescription Payment Plan. You will be required to pay the amount you owe.

You can make payments using one of these options:

  • Online -  Log in to your Select Health member account and pay your bill online. If you don’t have a Select Health member account, register today.
  • By Mail - Mail in a check with the payment stub from your invoice to:

    Select Health
    Attn: Accounts Receivable M3P
    P.O. Box 27368
    Salt Lake City, UT 84127

  • By Phone - Call us at 877-359-3949

How do I sign up?

You can sign up anytime during the year using these methods:

  • Online -  Log in or register for a Select Health member account and follow the instructions to sign up.
  • By Mail -  Use the Medicare Prescription Payment Plan Opt-In Form sign up. Please complete all of the fields and mail it to:

    Select Health Medicare 
    ATTN: Pharmacy Services
    PO Box 30196
    Salt Lake City, UT 84130-0196

During the Medicare Annual Enrollment Period (AEP), please allow 10 business days to be placed in the program. Outside of AEP, members will be placed in program within 24 hours of signing up.

If you would like additional information about the Medicare Prescription Payment Plan, visit Medicare.gov or call Member Services at 855-442-9900 (TTY users: 711).