Biden-Harris Administration Releases Final Part Two Guidance to Help People with Medicare Prescription Drug Coverage Manage Prescription Drug Costs

Beginning in 2025, a new provision will allow people with Medicare prescription drug coverage to pay their out-of-pocket costs in monthly installments, rather than all at once. The U.S. Department of Health and Human Services released additional guidance on the program, called the Medicare Prescription Payment Plan, earlier this week.
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“No one should have to choose between paying for medicine or putting food on the table,” Health and Human Services Secretary Xavier Becerra previously said. He added: “We are easing the burden by allowing payments to be spread out over time. HHS will continue tackling high health care costs on all fronts so that every American can benefit from access to life-saving medicines.”
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The program is part of the Inflation Reduction Act, which also includes another health care provision taking effect next year: Those with Medicare drug coverage will have their out-of-pocket prescription drug costs capped at $2,000. Click here for a fact sheet on the payment plan, and here for tips on choosing Medicare drug coverage.