Starting January 1, 2025, Medicare members with prescription drug coverage (Part D) will have the option of spreading out (smoothing) your out-of-pocket Part D drug costs through monthly payments over the duration of the plan year (January-December) instead of paying your cost share at the pharmacy. You can opt into the program at the beginning of the plan year or in any month that follows and can opt out of the program at any time.

If you enroll, your Medicare Advantage plan will pay the pharmacy the amount you would’ve paid for your out-of-pocket cost for your Medicare Part D expenses, which is capped at $2,000 for 2025. Your health plan will then bill you monthly, not to exceed your maximum cap. This means you would pay $0 at the pharmacy for a covered Part D drug.

To learn more about the program visit https://healthalliance.org/M3P. To view the programs most frequently asked questions click here.