NEW – PRESCRIPTION DRUG PAYMENT PROGRAM (called M3P)
There are lots of changes coming up in 2025.
One of them is part of the Inflation Reduction Act (referred to as the M3P): Medicare Prescription Payment Plan
For the first time, beginning in 2025, the prescription drug law, known as the Inflation Reduction Act, requires all Medicare prescription drug plans (Part D plans) — including both standalone Medicare prescription drug plans and Medicare Advantage plans with prescription drug coverage — to offer enrollees the option to pay out-of-pocket prescription drug costs in the form of capped monthly payments instead of all at once at the pharmacy.
People with Medicare will benefit from lower prescription drug costs and a redesigned prescription drug program. Benefits include:
- Insulin available at $35/month per covered prescription
- Access to recommended adult vaccines without cost-sharing
- A yearly cap ($2,000 in 2025) on out-of-pocket prescription drug costs in Medicare, reduced from $8,000 (in 2024)
- Expansion of the low-income subsidy program (LIS or “Extra Help”) under Medicare Part D to 150% of the federal poverty level starting in 2024 – to help more Medicare recipients save on the cost of their prescription drugs.
(we are told that NY State does not consider resources for qualification. Please ask when applying for Extra Help to confirm this).