How Can Seniors Save on Prescription Drug Costs?

How Medicare Part D Can Help Save on Prescription Drug Costs

Medicare Part D is the primary prescription drug coverage for Medicare beneficiaries. In 2025, a landmark change took effect: the out-of-pocket maximum for Part D was capped at $2,000 per year. This means no Medicare beneficiary will pay more than $2,000 out-of-pocket for covered drugs in a plan year - a major improvement from previous years when catastrophic drug costs had no cap.

Key Takeaways

The Part D $2,000 out-of-pocket cap (effective 2025) provides major protection against catastrophic drug costs
Extra Help (Low Income Subsidy) can reduce Part D premiums and copays to near zero
Prescription discount cards like GoodRx can sometimes beat Medicare Part D prices

How Much Do Drugs Cost With Medicare Part D?

Phase	2026 Threshold	Your Cost
Deductible	Up to $615	100% until met
Initial coverage	$615–$2,000 OOP	Copays/coinsurance
Catastrophic coverage	After $2,000 OOP	$0

How Discount Programs Can Help Save on Prescription Drug Costs

GoodRx - Free discount card, sometimes beats Part D prices for generics
RxSaver - Comparison tool for local pharmacy prices
NeedyMeds - Connects patients with manufacturer patient assistance programs
Extra Help (Low Income Subsidy) - Federal program reducing Part D costs for low-income beneficiaries
State Pharmaceutical Assistance Programs (SPAPs) - State programs supplementing Part D

Extra Help Program

If your income is below 150% of the federal poverty level, you may qualify for Extra Help, which can reduce your Part D premium to $0 and copays to $1–$4 per prescription.

Comparing Medicare Part D and Prescription Discount Programs

For expensive brand-name drugs, Part D is almost always better due to the $2,000 annual cap. For inexpensive generics, discount programs like GoodRx can sometimes offer lower prices than your Part D copay. You cannot use GoodRx and Part D simultaneously for the same prescription - choose whichever is cheaper for each medication.

Limitations of Prescription Drug Discount Programs

Discount program purchases don't count toward your Part D out-of-pocket maximum
Discount programs don't provide the same legal protections as insurance
Prices vary by pharmacy and can change without notice
Manufacturer coupons typically cannot be used with Medicare

Can I Use GoodRx with Medicare Part D?

You can use GoodRx instead of Part D for a specific prescription if GoodRx is cheaper, but you cannot use both together. Note that GoodRx purchases don't count toward your Part D deductible or out-of-pocket maximum.

What is Extra Help for Medicare Part D?

Extra Help (also called the Low Income Subsidy or LIS) is a federal program that helps people with limited income and resources pay for Part D premiums, deductibles, and copays. Apply through SSA.gov or your local Social Security office.

How do I Find the Cheapest Part D Plan for My Medications?

Use the Medicare Plan Finder at Medicare.gov to compare Part D plans based on your specific medications. Enter all your drugs and dosages to see the total annual cost for each plan.

Frequently Asked Questions

What is the Part D Out-of-pocket Maximum for 2026?

The Part D out-of-pocket maximum is $2,000 in 2026. After you reach this amount, your covered drugs cost $0 for the rest of the year.

Can I Switch Part D Plans if My Drug Costs are Too High?

You can switch Part D plans during the [Annual Enrollment Period](/faqs/medicare-annual-enrollment-period/) (October 15–December 7) each year. If your circumstances change significantly, you may qualify for a Special Enrollment Period.

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