The value of the Medicare Prescription Payment Plan

The Medicare Prescription Payment Plan is a voluntary payment option that works with your current Medicare Part D coverage to help you manage your out-of-pocket prescription drug costs. 

The plan allows you to spread payments across the calendar year (January through December) rather than paying in full at the pharmacy or through mail order each time you fill a prescription. 

Here are some benefits these plans include, along with an example of what your monthly costs could look like.

No surprising big bills at the pharmacy 

You won’t be asked to pay for your prescription purchase in full. In fact, you don’t spend a cent when picking up your medication or receiving mail-order delivery. Instead, your plan processes the claim and sends you a monthly bill for your share. That bill is capped, so there are no surprises. 

You can budget your costs  

While the purpose of the plan is not to save you money on prescriptions (there are other plans for that), it will help you manage your cash flow.  

Remove up-front costs for Part D deductibles  

Having a deductible means you pay 100% of your drug costs up to a certain amount before your plan’s cost-sharing goes into effect. Once you reach your deductible, you will pay a copay (a set amount) or coinsurance (a percentage of the total cost of a drug) for your drugs. Your Evidence of Coverage tells you what your cost-sharing amount will be for the different drug tiers. This deductible applies to drugs on Tier 3, Tier 4, and Tier 5. 

If your plan has a Part D deductible and you’re concerned about paying your full drug costs, the Medicare Prescription Payment Plan could be a good option for you since it removes any up-front costs. 

You won’t pay any fees to participate or interest on late payments 

If you miss a payment, you’ll get a reminder from your plan. Simply pay the bill by the date listed in that reminder.  

Anyone with Medicare Part D coverage can participate in the Medicare Prescription Payment Plan. The chance to participate is not based on income and is completely voluntary.  

For more information on the Medicare Prescription Payment Plan, including a list of frequently asked questions, visit ibxmedicare.com/ira. 

Independence Blue Cross offers PPO, HMO-POS, and HMO Medicare Advantage plans with a Medicare contract. Enrollment in Independence Blue Cross PPO, HMO-POS, and HMO Medicare Advantage plans depends on contract renewal. 

Website last updated: 9/30/2026

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