Many Medicare beneficiaries and agents have heard about the 2025 prescription payment. We will answer the question; what is the prescription payment plan. The plan is available to Medicare Part D beneficiaries. It provides a way to pay high out-of-pocket prescription costs by spreading them out over the course of months instead of all at once at the pharmacy. The prescription payment plan is sometimes called Smoothing. The payment plan is designed to make higher cost prescription drugs more affordable for Medicare beneficiaries.
How the program works
All Medicare Part D plan enrollees who have high cost prescriptions can participate in the prescription payment plan as long as the prescription is on their plan’s formulary. Plan enrollees can have their out of pocket prescription costs divided into manageable monthly payments over the course of the remaining months in the year.
Eligible beneficiaries simply contact their Part D insurance provider to opt into the program. The plan provider calculates the payments evenly over the course of the year. If the plan enrollee wants to add additional prescriptions to the payment plan, they contact their Part D insurance provider to have their payment arrangement adjusted. There is no charge to enroll in this program and beneficiaries do not pay interest or penalties.
Find out more about Part D costs for 2025
How to opt in to the prescription payment plan
It is not complicated to enroll in the plan. In some instances, Part D plan providers will contact beneficiaries who normally take high-cost prescriptions. Interested enrollees should contact the customer service number for their plan provider and request instructions to opt in.
Reasons to use the plan
There are many reasons to enroll in this program. For example; enrollment can provide a way for beneficiaries to manage their budget by spreading out the cost of their medication. This helps them avoid large pharmacy bills.
Knowing there is an alternative to a large bill, may help ensure beneficiaries fill their necessary prescriptions without financial stress. In some cases, beneficiaries may go without needed medications due to budget concerns. This can help eliminate that issue. The plan provides peace of mind with the safety of predictable monthly costs.
Learn about the $2,000 annual cap on Out-of-Pocket prescription costs
Watch a YouTube video on the drug cap for 2025
Because Medicare makes coverage changes each year, both agents and plan enrollees need to stay up to date on all information available. Knowing all the choices available helps beneficiaries receive needed coverage 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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