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.
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.