Medicare gives you several built-in tools to reduce drug costs. Here is how to use each one.
Use the 2026 Part D cap and payment plan
In 2026, Medicare Part D caps your out-of-pocket drug spending at $2,100; after that, covered prescriptions cost $0 for the rest of the year. If your costs are high, this cap is powerful protection, so make sure your expensive drugs are filled through your plan, where the spending counts. If paying a large bill at once is hard, the Medicare Prescription Payment Plan lets you smooth your out-of-pocket costs into capped monthly installments across the year. Neither requires extra income qualification; they apply to everyone with Part D.
Apply for Extra Help and choose the right plan
If your income and resources are limited, Extra Help can slash Part D premiums, deductibles, and copays, an average benefit of about $5,700 a year. You can apply anytime through Social Security. Just as important, review your Part D or Medicare Advantage drug plan every Open Enrollment (October 15 to December 7), because the cheapest plan depends on the exact drugs you take and formularies change yearly. Switching to generics and 90-day mail order adds further savings. A 1-800-MEDIGAP agent can run a plan comparison against your medication list at no cost.