7 Ways to Lower Your Prescription Drug Costs on Medicare

Spending too much on medications? These seven proven strategies can help you save hundreds or thousands on your Medicare prescription costs.

Prescription drugs are one of the biggest out-of-pocket expenses for Medicare beneficiaries. Even with Part D coverage and the new $2,000 annual cap, there are additional strategies that can significantly reduce what you pay. Here are seven proven ways to lower your Medicare prescription drug costs.

1. Review and Switch Your Part D Plan Annually

This is the single most impactful step you can take. Part D plans change their formularies, copay amounts, and preferred pharmacies every year. A plan that was the cheapest option last year may not be this year. During the Annual Enrollment Period (October 15 – December 7), use Medicare.gov's Plan Finder to compare plans based on your specific medications.

How Much Can You Save?

Studies show that beneficiaries who switch Part D plans can save an average of $300–$600 per year. Yet only about 10% of beneficiaries review and switch plans annually.

2. Ask About Generic and Biosimilar Alternatives

Generic drugs contain the same active ingredients as brand-name drugs but cost 80–85% less on average. Biosimilars are the generic equivalent for biologic drugs and typically cost 15–40% less. Ask your doctor if a generic or biosimilar is available for any brand-name medication you take.

3. Use Your Plan's Preferred Pharmacy

Most Part D plans have preferred pharmacy networks that offer lower copays than standard pharmacies. Using a preferred pharmacy can cut your copays by 30–50%. Check your plan's pharmacy directory to find which pharmacies near you are "preferred" vs. "standard."

4. Take Advantage of Mail-Order Pharmacy

For maintenance medications you take regularly, mail-order pharmacies often provide a 90-day supply at a lower cost than buying 30-day supplies at retail. Many plans charge the equivalent of two copays for a 90-day mail-order supply — effectively giving you a month free.

5. Apply for Extra Help (Low-Income Subsidy)

If your income is below $22,590 (individual) or $30,660 (couple) and your resources are below $17,220 (individual) or $34,360 (couple), you may qualify for Extra Help. This program can reduce your Part D premiums to $0, eliminate or reduce deductibles, and lower copays to $0–$11.20 per prescription.

Worth Checking

An estimated 2 million Medicare beneficiaries qualify for Extra Help but haven't applied. The savings can be worth $5,000 or more per year. Apply through Social Security at ssa.gov or by calling 1-800-772-1213.