7 Ways to Lower Your Medicare Drug Costs

Paying too much for Medicare prescriptions? These 7 strategies can cut your Part D drug costs — from Extra Help/LIS to preferred pharmacies and generic substitutions.

Quick Summary

Even with the new $2,000 cap, you can save more by using preferred pharmacies, switching to generics, and applying for 'Extra Help' if you meet income limits.

With the cost of living rising, finding ways to lower medicare drug costs has become a top priority for millions of American seniors. While the 2026 $2,000 cap is a huge relief for some, many others still struggle to pay for their monthly medications. Fortunately, there are several underutilized strategies that can slash your pharmacy bills by 50% or more.

$5,000

Potential annual value of Extra Help

80%+

Savings when switching to generics

$200

Avg savings using preferred pharmacies

7 Strategies to Reduce Your Drug Costs

Use these proven methods to save money at the pharmacy:

Apply for 'Extra Help' (LIS)

If your income is below ~$22,000, you could qualify for the Low-Income Subsidy, which lowers copays to as little as $11.

Use a Preferred Pharmacy

Most plans have a specific list of pharmacies (like CVS or Walgreens) where they offer lower 'preferred' pricing.

Switch to 90-Day Mail Order

Many plans offer a 90-day supply for the price of two 30-day copays, essentially giving you one month free.

Ask for Generic Substitutions

Ask your doctor if a Tier 1 generic can replace an expensive Tier 3 brand-name drug.

Request a Formulary Exception

If your drug isn't covered, your doctor can submit a medical necessity form to force coverage.

Check State Assistance Programs (SPAPs)

Many states have their own programs to help seniors with drug costs that stack on top of Medicare.

Manufacturer Coupons (Carefully)

While you can't usually use manufacturer coupons with Part D, some drug companies have separate foundations to assist Medicare patients.

Strategy	Est. Annual Savings	Difficulty
Extra Help / LIS	$3,000 – $5,000+	Hard (Paperwork)
Generic Switch	$500 – $2,000	Easy (Ask Doctor)
Preferred Pharmacy	$100 – $300	Very Easy
Mail Order	$50 – $200	Easy
State Programs	$500 – $1,500	Medium

Pharmacy Shopping

Switching to a preferred pharmacy alone can save you $200 or more per year on the exact same medication. Check your plan's website to find the 'Preferred' locations near you.

Medicare Drug Price Negotiations: New for 2026

The Inflation Reduction Act authorized Medicare to negotiate prices directly with pharmaceutical companies for the first time. For 2026, negotiated lower prices take effect for the first 10 drugs — including some of the most widely used and expensive medications. If you take any of these drugs, your out-of-pocket cost should decrease automatically.

Eliquis (apixaban) — blood clot prevention
Jardiance (empagliflozin) — type 2 diabetes
Xarelto (rivaroxaban) — blood clot prevention
Januvia (sitagliptin) — type 2 diabetes
Farxiga (dapagliflozin) — type 2 diabetes
Entresto (sacubitril/valsartan) — heart failure
Enbrel (etanercept) — rheumatoid arthritis
Imbruvica (ibrutinib) — blood cancers
Stelara (ustekinumab) — psoriasis/Crohn's
Fiasp/NovoLog (insulin aspart) — diabetes

Negotiated Prices Apply Automatically

You don't need to do anything to receive negotiated drug prices. If you're enrolled in a Medicare Part D plan or Medicare Advantage with drug coverage (MAPD), the lower prices apply automatically at the pharmacy starting January 1, 2026.

GoodRx vs Medicare Part D: Which to Use?

You cannot use GoodRx and your Part D benefit simultaneously — the pharmacy will process one or the other. However, you can choose the cheaper option at each transaction. The key tradeoff: GoodRx costs often beat your copay for cheap generics, but GoodRx purchases do NOT count toward your $2,000 annual out-of-pocket cap. If you're taking expensive medications and trying to reach the $2,000 cap quickly (after which you pay $0), use your Part D plan.

GoodRx Doesn't Count Toward Your $2,000 Cap

Only purchases made through your Medicare Part D benefit count toward the $2,000 annual out-of-pocket cap. If you pay cash at the pharmacy using GoodRx or a manufacturer coupon, those dollars don't accumulate toward your cap — and you'll reach the cap more slowly.

State Pharmaceutical Assistance Programs (SPAPs)

Many states operate their own programs to help residents with drug costs on top of Medicare Part D. These programs — called SPAPs — vary widely by state and income limits. Some provide additional premium assistance, while others provide supplemental drug coverage or co-pay help. Call your State SHIP office or visit medicare.gov/plan-compare to find SPAP programs available in your state.

5 Common Drug Cost Mistakes Seniors Make

Staying in the same Part D plan year after year without reviewing your formulary — your drug's tier may have changed
Using a non-preferred pharmacy and paying 30–50% more than at a preferred pharmacy for the same drug
Paying cash for a drug that's covered on your plan because you think it's faster or easier
Not applying for Extra Help when income/assets qualify — leaving thousands in savings uncollected
Requesting a 30-day supply when a 90-day mail order supply costs the same or less

Review Your Part D Plan Every October During AEP

Plans change their formularies, tiers, and preferred pharmacy networks every January 1. A drug that cost you $10/month this year might cost $60/month next year if it moved tiers. Use Medicare Plan Finder each October to verify your costs won't jump in the new year.

Key Takeaways

✓Extra Help is the most valuable resource for low-income seniors.
✓Preferred pharmacies offer lower copays than standard network pharmacies.
✓Generics are 80-85% cheaper than brand-name drugs on average.
✓90-day mail order can save you both money and trips to the store.
✓Always review your plan's formulary during the AEP to avoid surprises.
✓The $2,000 cap protects you, but these strategies help you stay well below it.

Frequently Asked Questions

How do I apply for Extra Help with Part D?

You can apply through the Social Security Administration (SSA) website or by calling 1-800-772-1213. It can save you an average of $5,000 per year.

Can I switch Part D plans outside of AEP?

Generally, no, unless you qualify for a Special Enrollment Period (like moving or losing other coverage) or if you qualify for Extra Help.

What drugs does Medicare negotiate prices for?

Under the Inflation Reduction Act, Medicare is now negotiating prices for top-selling drugs like Eliquis, Jardiance, and Enbrel, with new lower prices starting in 2026.

Can I use GoodRx with Medicare Part D?

You cannot use GoodRx and Medicare Part D together on the same transaction. However, you can choose to skip your insurance and use GoodRx if the price is lower, but that cost won't count toward your $2,000 cap.

7 Ways to Lower Medicare Prescription Drug Costs in 2026