If you’re on Medicare, a new program will be available in 2025 that might make it easier to pay for your medicines. It’s called the Medicare Prescription Payment Plan.

What Is the Medicare Prescription Payment Plan?

The Medicare Prescription Payment Plan is a program that lets you spread out your estimated out-of-pocket drug costs throughout the year. If you have a Medicare Part D or Medicare Advantage plan, you have the option to sign up for the program starting on Jan. 1, 2025.

The Medicare Prescription Payment Plan is part of the Inflation Reduction Act that passed in 2022. It included several items, including this program, that would help people with asthma and allergies. The Asthma and Allergy Foundation of America (AAFA) supported the Inflation Reduction Act in 2022, and we are happy that this program is now available to help people with asthma who are on Medicare better manage the cost of their medicines.

The Inflation Reduction Act also caps Medicare out-of-pocket drug costs to $2,000 per year. This benefit is for everyone on Medicare, not just people who sign up for the Medicare Prescription Payment Plan.

How Can I Sign Up for the Medicare Prescription Payment Plan?

The program is optional, but it may help you if you pay high drug costs, especially at the beginning of the year.

To sign up, go to the website for your health or drug plan. Or call your plan to set it up:

If you want to participate in the Medicare Prescription Payment Plan in 2025, contact your prescription plan as soon as possible. The plan will start Jan. 1, 2025.

You can also sign up for the plan at any time during 2025. After Jan. 1, 2025, contact your prescription plan to sign up for the Medicare Prescription Payment Plan anytime.

Will the Medicare Prescription Payment Plan Reduce the Cost of My Medicines?

No, the program will not reduce your medicine costs. But it will spread out your costs over the year so you can manage your budget better. The new $2,000 out-of-pocket cap may help reduce your yearly costs if you normally spend more than that on your medicines.

How Can I Save Money on My Prescription Medicines?

Many pharmaceutical companies, state programs and nonprofits have drug assistance programs (PAPs) that offer free or low-cost medicines. AAFA has a list of several drug assistance programs.

Some programs may not offer help to people with Medicare, but you may be able to get help through these options:

• Extra Help from Medicare
• State Pharmaceutical Assistance Program
• Pharmaceutical assistance program for people in a Medicare Part D drug plan