The 2025 prescription payment plan is available to Medicare Part D beneficiaries. It lets them pay high out-of-pocket prescription costs over the course of months instead of all at once. The other name for The prescription payment plan is Smoothing. The payment plan is part of an effort to make prescription drugs more affordable for Medicare beneficiaries.
How the prescription payment plan works
Any Part D plan enrollee can participate in the prescription payment plan as long as they have high-cost prescriptions that are on their plan’s formulary. Beneficiaries have the chance to divide their out-of-pocket prescription costs into manageable monthly payments.
Eligible beneficiaries can contact their Part D insurance provider to opt into the program. The plan provider will calculate the payments to spread out evenly over the course of the year. The beneficiary can contact their insurance Part D provider if they need to add prescriptions to their current arrangement and have it adjusted.
Enrollees do not pay a cost to participate in the payment plan. Beneficiaries do not pay interest or penalties on their medication costs.
How to join the prescription payment plan
It should be fairly simple to enroll in the plan. In some instances, the Part D plan provider may contact beneficiaries who are known to have high-cost prescriptions. Beneficiaries who are interested in the plan should contact their plan provider for instructions to opt in.
Why enroll in the plan
There are many reasons to enroll in this program. Enrollment may help beneficiaries manage their budget by spreading out their prescription costs. This is a great way to avoid a large bill at the pharmacy.
Knowing there is an alternative to a large bill, may help ensure beneficiaries fill their necessary prescriptions without having to face financial stress. In some cases, beneficiaries have had to go without needed medications due to budget concerns. This help eliminate that issue. The plan also provides peace of mind with the safety of predictable monthly costs.
Click here to learn about the $2,000 annual cap on Out-of-Pocket prescription costs
Watch a YouTube video on the drug cap for 2025
Each year, Medicare makes changes to the plans beneficiaries are offered. This is why both agents and beneficiaries need to stay up to date on all changes that place. Knowing all the choices available helps beneficiaries receive the coverage they need and plan for their year ahead. A licensed insurance agent can provide advice to ensure beneficiaries choose a plan that suite their needs and budget.
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