Medicare Part D: 7 Ways to Save on Your Prescription Medications
Key takeaways:
You may be able to save on prescription medications covered by Medicare Part D by checking your eligibility for state-funded resources or the Medicare Extra Help program.
There are also patient assistance programs through manufacturers that offer free or low-cost prescription medications to Medicare enrollees.
In some cases, you may get a better price for your medication by using a GoodRx coupon instead of your Medicare coverage.
Table of contents
Medicare Part D provides Medicare enrollees with coverage for prescription medications. While Part D covers a variety of medications, as well as certain vaccines and medical supplies, some enrollees still face high prescription medication costs. This is the case despite reforms like the upcoming changes in 2025 that will cap annual out-of-pocket costs for prescription medications at $2,000.
Fortunately, there are ways to save on your prescription medications. From GoodRx coupons to patient assistance programs, here are seven ways to save money on the medications you need.
1. Check state-funded resources
Depending on where you live, your state may offer programs to help you navigate prescription medication costs. A good place to start is your local Department of Aging. This U.S. Department of Health and Human Services office can help you find the best Medicare plan for the coverage you need.
Prescription Savings Are Just the Beginning
See what other benefits you qualify for—from cashback cards to cheaper insurance.
Some states even have their own cost-saving programs for older adults. For example, Pennsylvania runs PACE and PACENET. These programs help eligible residents get prescription medications at reduced costs.
Alternatively, you can find out if your state has a State Pharmaceutical Assistance Program by using Medicare’s search tool. These programs are state-run and help qualifying residents pay for prescription medications.
2. See if you qualify for the Extra Help program
The Medicare Extra Help/Low-Income Subsidy program is a federally funded program for people covered under a Medicare Part D plan. It helps reduce enrollees’ out-of-pocket costs by limiting their deductibles and copays. To qualify, your income and assets must be under a certain limit.
Most people who are eligible for Extra Help benefits receive significant savings on Part D prescription medication costs. These savings include:
No monthly premiums for Medicare Part D
No Medicare Part D deductible
Low copays for prescription medications
In 2025, Extra Help participants will be subject to a copay of $12.15 or less for brand-name prescription medications and $4.90 or less for generic medications at participating pharmacies. Though, participants who are enrolled in both Medicare and Medicaid and have an income less than or equal to 100% of the federal poverty level (FPL) can get their copays reduced even further. In 2025, participants who meet these requirements will pay:
$4.80 per brand-name medication
$1.60 per generic medication
Need help paying for Medicare Part D coverage? Find out if you qualify for the Medicare Extra Help program.
The Medicare Prescription Payment Plan: The Medicare Prescription Payment Plan allows you to pay pharmacy bills in manageable monthly payments. Read how it works, who qualifies, and how to enroll.
Haven’t signed up yet for Medicare Part D? Here’s how and when to enroll to avoid penalties.
You automatically qualify and are enrolled in Extra Help if you meet certain eligibility criteria. If you don’t automatically qualify, you can complete an online application through the U.S. Social Security Administration. You can also call 1-800-772-1213 (TTY 1-800-325-0778) to apply over the phone.
3. Learn more about patient assistance programs
Patient assistance programs (PAPs) offer free or low-cost medications to uninsured and low-income consumers. These programs, which primarily offer savings on brand-name medications, are usually run by private pharmaceutical companies or nonprofit organizations. You must meet certain qualifications and complete paperwork to receive savings from PAPs. However, some PAPs exclude Medicare recipients.
One example of a PAP that offers savings to Medicare recipients is the Novo Nordisk Patient Assistance Program, which provides the manufacturer’s medications free of charge to those who qualify. The program includes many diabetes medications, such as Ozempic (semaglutide) and Victoza (liraglutide). To qualify for the program, you must:
Be a U.S. citizen or legal resident
Have a total household income at or below 400% of the FPL
Have Medicare or be uninsured
Not be enrolled in Medicaid, Medicare Extra Help, U.S. Department of Veterans Affairs (VA) benefits, or other federal, state, or government assistance programs
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You can generally apply for PAPs online, by mail, or by fax. You will likely have to include proof of income, tax documents, and a form filled out by your prescriber with your application.
Use Medicare’s search tool to find out if there are patient assistance programs for your prescription medications.
4. Opt for generic prescription medications when possible
Switching to generic prescription medications is another way to lower what you pay for your medications with Part D. Generic medications are required to have the same active ingredients and meet the same safety standards as brand-name medications. But generic medications can typically cost 80% to 85% less than brand-name medications.
Part D plans categorize medications into different tiers. Prescription medications in lower tiers have a lower copay. Generic medications are almost always placed in tier 1. This means what you pay out of pocket for a generic medication is generally less than what you pay for a brand-name medication in a higher tier.
5. Consider the Medicare Prescription Payment Plan
While not technically a savings option, the Medicare Prescription Payment Plan is a new program that can help make paying for medications more manageable. Starting in 2025, this program is open to anyone with Part D coverage, including those with Medicare Advantage plans that offer prescription medication coverage.
Here's how it works: Instead of paying for medications up front at the pharmacy, you'll receive a monthly bill from your insurer. This allows you to make smaller monthly payments throughout the calendar year, instead of paying all at once.
You'll still need to pay your Part D plan premium if you have one, but this option can help you better manage your monthly expenses. To get the most benefit, sign up early in the calendar year, as this gives you more months throughout the year to spread out your costs. Contact your insurer directly to sign up.
6. Compare plans before enrolling
Medicare open enrollment, which takes place every year from October 15 to December 7, is your chance to find the best plan for your prescription medication needs. Plans’ costs and coverage details can change each year, so it’s a good idea to use this time to explore if a different plan might cover your medications at a lower cost.
To compare plans:
Make a list of all your medications and what dosages you take.
Visit Medicare’s plan finder tool.
Enter the names of your prescription medications to see which plans offer the best coverage.
Look at premiums, deductibles, and medication costs for each plan.
Check if your preferred pharmacy is in each plan's network.
Spending some time comparing options could mean significant savings on your medications next year.
7. Use GoodRx coupons
Resources like GoodRx provide discounts on medications separate from insurance. So even if you have Medicare, you can use GoodRx coupons. You just can’t combine the coupons with your insurance benefits.
First, compare prices across different pharmacies in your area by searching for your prescription medication on the GoodRx website or app. If a GoodRx coupon offers you a better price than what you’d pay through Part D, you can then use the website or app to download the free coupon. Then, show the coupon at the pharmacy when you fill your prescription, which you’ll pay for out of pocket.
How does GoodRx work with Medicare?
While you can't use GoodRx and Medicare at the same time, you can opt to use GoodRx coupons instead of your coverage when you fill your prescriptions. Just let your pharmacist know you want to use a GoodRx coupon rather than your Medicare coverage.
Consider using a GoodRx coupon instead of Medicare in the following situations:
Your medication isn't covered by your Medicare plan.
The medication costs less with a GoodRx coupon than with your Medicare copay.
You don’t expect to reach your annual deductible.
Prescription medications purchased using a GoodRx coupon won't count toward your Medicare deductible or out-of-pocket maximum. So compare both options carefully to decide what works best for your situation.
The bottom line
If you have Medicare Part D coverage, you have several ways to save on prescription medication costs. Begin by researching resources offered by your state or applying for the Medicare Extra Help program. You can also look into patient assistance programs or check to see if GoodRx coupons can provide you with better prices for your medication. Finally, you can talk to your prescriber about switching to generic medications.
Why trust our experts?
References
Centers for Medicare & Medicaid Services. (2024). Calendar Year (CY) 2025 resource and cost-sharing limits for low-income subsidy (LIS).
HealthCare.gov. (n.d.). Federal poverty level (FPL).
Medicare.gov. (n.d.). Explore your Medicare coverage options.
Medicare.gov. (n.d.). Find a Pharmaceutical Assistance Program for the drugs you take.
Medicare.gov. (n.d.). Find out if your state has a State Pharmaceutical Assistance Program.
Medicare.gov. (n.d.). Help with drug costs.
Medicare.gov. (n.d.). What Medicare Part D drug plans cover.
Medicare.gov. (n.d.). What’s the Medicare Prescription Payment Plan?
NovoCare. (n.d.). Patient Assistance Program.
Pennsylvania Department of Aging. (n.d.). Pharmaceutical Assistance Contract for the Elderly (PACE) program.
U.S. Department of Health and Human Services. (2022). Resources near you.
U.S. Food and Drug Administration. (2021). Generic drug facts.
U.S. Food and Drug Administration. (2021). Generic drugs: Questions and answers.
U.S. Social Security Administration. (n.d.). Apply for Medicare Part D Extra Help program.
