The Medicare Prescription Payment Plan: Yay Or Nay?

The Inflation Reduction Act is having quite an impact on 2025 Part D prescription drug coverage. One initiative, the Medicare Prescription Payment Plan, is similar to an installment payment plan. This allows a drug plan enrollee to spread costs out over the year.

You can find examples relevant to you in the Medicare Plan Finder. Right before the section called “Estimated Total Drug and Premium Cost” on the Plan Details page, there is a paragraph about the Medicare Prescription Payment Plan. Click on “Find out what your drug costs might look like with this payment option” and then a box appears, “How will my monthly bill be calculated?” You’ll see a two-column chart of your monthly costs by pharmacy with and without this payment option. I have reviewed over 100 of these charts and here are a few observations.