New for 2025: The Medicare Prescription Payment Plan (M3P)

The Medicare Prescription Payment Plan (M3P) is a payment option that helps you manage your out-of-pocket Part D costs. You can opt into the program, which allows your prescription costs to be spread across monthly payments that are billed by your plan directly to you.

When you fill a prescription for a drug covered by a Part D plan, you won’t pay anything at the pharmacy. Instead, you will receive a bill each month from your plan sponsor.

Instead of being hit with high costs at the beginning of the year, you can have level monthly payments. It’s very similar to having leveled utility payments across twelve months instead of high bills during the winter.

Note: Anyone on an MAPD plan with drug coverage with cost sharing or a PDP is eligible to use this payment option.

The Medicare Prescription Payment Plan works for a stand-alone prescription drug plan (PDP) or with a Medicare advantage plan with prescription (MAPD) coverage.

However, the M3P is most suitable for those with tier 3, 4, and 5 drugs. If you only have low-cost tier 1 and 2 generics, you likely will receive little or no benefit from the M3P program.

To sign up, please contact either your Part D prescription plan or your Medicare advantage plan. You will be able to sign up for the program beginning October 15, 2024, over the phone, online, or with a paper form. Note: The Medicare Prescription Payment Plan begins for the 2025 plan year, not before.

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