This new payment option can help you manage your drug costs by splitting them into interest-free monthly payments throughout the year.
What is the Medicare Prescription Payment Plan?
The federal government now requires Medicare to offer a new payment option to help you manage out-of-pocket drug costs by spreading them across the calendar year. Any member with Medicare Part D prescription drug coverage can use this payment option.
There’s no cost to participate in the Medicare Prescription Payment Plan, and you will not pay any interest or fees on the amount you owe. All plans with drug coverage offer this payment option, and participation is voluntary.
How do I know if the plan is right for me?
This program may be helpful if you have high drug costs or if you would benefit from spreading your drug costs out over time. You may also benefit from this plan if you opt in early in the new year. The more months you have in the program, the more your payments will spread out. Answer a few questions to see if this payment option may help you.
This payment option may NOT be the best choice for you if:
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Your yearly drug costs are low.
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Your drug costs are the same each month.
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You are considering signing up for the payment option late in the calendar year (after September).
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You don’t want to change how you pay for your drugs.
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You get or are eligible for Extra Help from Medicare.
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You get or are eligible for a Medicare Savings Program.
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You get help paying for your drugs from other organizations, like a State Pharmaceutical Assistance Program (SPAP), a coupon program, or other health coverage.
Please note: This payment option may help you manage your drug costs, but it does not save you money. If you are having trouble paying for your prescriptions, you may find help through these money-saving programs.
How it Works
Step 1: Opt in
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If you are participating in the Medicare Prescription Payment Plan in 2026 and are not changing CDPHP plans, you will be automatically opted into the program in 2027.
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If you are new to CDPHP or the Medicare Prescription Payment Plan, you can can opt into the Medicare Prescription Payment Plan during AEP over the phone or by mail. Please contact CDPHP Customer Care at 1-888-248-6522. Starting 01/01/2027, you will be able to opt-in using the CDPHP Member Portal.
Step 2: Fill your prescriptions
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Once we review your opt-in request, we will send you a letter confirming your participation in the Medicare Prescription Payment Plan. You can then fill your eligible Part D prescriptions through your pharmacy, but will no longer pay anything upfront.
Step 3: Pay monthly
Your monthly bill
Prescription costs that you incur over the course of your plan year will be reflected in each monthly bill. This means your monthly bill may change until you hit your out-of-pocket maximum ($2,400 in 2027). Learn more about your monthly payments and see these helpful examples of calculations.