Medicare Prescription Payment Plan Helps Spread Drug Costs Over the Year

Article by Bridgette Paoletta, Coordinator of Aging Services

The Medicare Prescription Payment Plan is a payment option that works alongside your current drug coverage to help manage out-of-pocket costs for covered medications by spreading them across the calendar year. Medicare beneficiaries with high prescription drug expenses may be able to divide those costs into smaller payments. This option is available to people with Medicare Part D coverage, including those enrolled in a Medicare Advantage plan that includes prescription drug benefits.

Rather than paying the full price of covered prescriptions at the pharmacy, participants receive their medications without paying at the counter. The cost is then paid through monthly bills to the Medicare drug plan for the rest of the year.

The Medicare Prescription Payment Plan does not lower the total amount owed for prescriptions. It only changes when the money is paid. Monthly payment amounts can vary depending on when a person joins and how much their prescriptions cost.

There is no fee to join the program. Participants must still keep making monthly payments to their Medicare drug plan, and they may leave the program at any time, though any remaining balance will still need to be paid.

This option may be particularly useful for people with high prescription costs early in the year who would rather spread those expenses over several months. It may not be the best fit for everyone, and a Medicare plan can provide an estimate of monthly payments and explain how the program would work in individual cases.

During Medicare Open Enrollment, review your prescription coverage and ask your Medicare plan about the Medicare Prescription Payment Plan for the coming year.

If you need help with Medicare, contact the Chautauqua County Office for Aging Services and NY Connects. You can visit one of the office locations, email [email protected], or call 716-753-4582.