How to Pay Less for Your Prescriptions on Medicare

New rules cap what you pay for drugs each year — and there is extra help many people never apply for.

By the Senior Dime editorial team · Updated October 2026

Dottie’s take: “Is there a cheaper option?” is the best free question in America. Ask your pharmacist every single time.

Prescription drugs are one of the biggest expenses for many older adults. The good news: recent changes to Medicare drug coverage, plus a few simple habits, can lower what you pay at the pharmacy counter.

1. Know about the yearly out-of-pocket cap

Starting in 2025, Medicare drug plans (Part D) have a yearly limit on what you pay out of pocket for covered drugs. For 2026 the cap is $2,100. Once you reach it, you pay nothing more for covered drugs for the rest of the year.

2. Spread costs out with the payment plan

The Medicare Prescription Payment Plan lets you pay your drug costs in monthly amounts across the year, instead of large bills at the pharmacy. It does not lower your total cost, but it can make big months easier to handle. Call your drug plan to sign up.

3. Apply for Extra Help

Extra Help is a Medicare program that helps people with limited income and resources pay for Part D premiums, deductibles and copays. Many people who qualify have never applied. You can apply through Social Security online, by phone, or at a local office.

4. $35 insulin

If you use insulin covered by your Medicare drug plan, your cost is capped at $35 for a month’s supply.

5. Ask about generics

Generic drugs have the same active ingredients as brand-name drugs and usually cost much less. Ask your doctor or pharmacist: “Is there a generic or lower-cost option that would work for me?”

6. Try a 90-day supply or mail order

Many plans charge less when you fill a 90-day supply, especially through mail-order pharmacies. It also means fewer trips to the pharmacy.

7. Use a preferred pharmacy

Your plan may have “preferred” pharmacies with lower copays. Check your plan’s pharmacy list before you fill.

8. Review your plan every fall

Drug plans change their coverage each year. During Medicare Open Enrollment (October 15 – December 7), compare plans using your exact list of medicines.

This guide is for general information only. Program rules, dates and amounts can change and may vary by state. Please confirm details with the official program or a trusted advisor.