The Medicare Prescription Payment Plan is a voluntary payment option that works with your Medicare drug coverage (Part D). It allows you to spread your out-of-pocket prescription drug costs over the calendar year (January–December) instead of paying the full amount at the pharmacy.

How it works

• You must choose to participate (opt in) to use this payment option
• Once you enroll:
  • You will not pay for covered prescriptions at the pharmacy
  • Instead, your health or drug plan will send you a monthly bill
• You must continue to pay your monthly plan premium (if you have one)

Important things to know

• Participation is voluntary. You can choose whether to enroll or not
• This program does NOT reduce your drug costs — it only spreads payments over time
• There is no cost to join, but you are required to pay your monthly bills
• You are still responsible for the full amount of your prescription drug costs
• Your monthly payment amount may change each month based on the prescriptions you fill

Payment responsibilities

• You must pay your monthly bill on time, even though you do not pay at the pharmacy
• If you do not pay your monthly bill:
  • You may be removed from the Medicare Prescription Payment Plan
  • You may be required to pay your remaining balance immediately
• Missing payments may affect your ability to continue participating in this program in the future

Who may benefit

This payment option may help you if you:

• Have high prescription drug costs early in the year, and
• Want to spread those costs into more predictable monthly payments

Who may not benefit

This payment option is not right for everyone. It may not be helpful if you:

• Have low or consistent prescription drug costs throughout the year
• Prefer to pay for your prescriptions at the pharmacy when you receive them
• Do not want to manage or are unable to manage a monthly bill

Annual out-of-pocket limit

There is a yearly limit on your Medicare drug costs.

In 2026, the Medicare drug coverage annual out-of-pocket maximum is $2,100

This limit applies to all people with Medicare drug coverage, even if you do not participate in the Medicare Prescription Payment Plan

Once you reach this limit, you will not pay additional covered drug costs for the rest of the year.

How to join or learn more

To enroll (opt in) or learn more about this payment option:

• Ask your pharmacist for more information
• Or contact us:

California: 1-844-305-3879 (TTY 711)
Florida: 1-844-788-8935 (TTY 711)
Michigan: 1-855-855-0336 (TTY 711)

If you would like to sign up for the Medicare Prescription Payment Plan, call 1-844-306-6920 (TTY 711) or register through the Medicare Prescription Payment Plan Portal

Need more information?

• View the Medicare View the Medicare Prescription Payment Plan Fact Sheet

• Learn about the Prescription Payment Plan to see if this option may be right for you

• Log in to the Medicare Prescription Payment Plan Portal