Skip to Content

Medicare Prescription Payment Plan (MPPP)

Main Content

The Medicare Prescription Payment Plan is a new program required under the Inflation Reduction Act. Starting in 2025, eligible Part D enrollees can pay out-of-pocket prescription drug costs in monthly payments instead of all at once. This program does not save you money or lower your drug costs - it's a monthly installment payment plan.

Here's a deeper look into the Medicare Prescription Payment Plan.

Pharmacy Resources

Open AllClose All
What is The Medicare Prescription Payment Plan?

The Medicare Prescription Payment Plan is an optional program that can help you manage your prescription payments. With this program:

  • Costs for your covered Part D prescriptions are spread out over the plan year
  • You pay $0 at the pharmacy when you fill new or existing covered Part D prescriptions
  • You’ll receive a monthly bill from iCare with the amount you owe, your due date, and instructions on how to make a payment

Note: This program can only help you manage your expenses—it can’t save you money or lower your drug costs.

Who is the program for?

The Medicare Prescription Payment Plan may help you manage your Part D prescription drug costs. Here are some tips to help you decide:

  • If during the prior plan year, you filled a single prescription costing more than $600.  
  • If you have spent more than $2,000 on your covered Part D prescriptions
  • If you sign up early in the new plan year (the more months you have in the program, the more your payments will be spread out)

This payment option might not be helpful if you:

  • Have prescription costs that are the same month to month
  • Have higher drug costs later in the year, as your balance would need to be paid off by year end
  • Are eligible for a Dual Eligible Special Needs Plan  
  • Qualify for cost savings programs:
    • Extra Help/Low-Income Subsidy (LIS)
    • Medicare Savings Program
    • State Pharmaceutical Assistance Program (SPAP)
    • Manufacturer’s Pharmaceutical Assistance Programs, sometimes called Patient Assistance Programs (PAPs)

For more information, visit Medicare.gov’s Prescription Payment Plan page (opens in new window) or contact your local Social Security office. You can find your local Social Security office at ssa.gov/locator (opens in new window) or by calling 1-800-772-1213. TTY users can call 1-800-325-0778.

How to opt-in to the Medicare Prescription Payment Plan

Once you have enrolled in a 2025 Medicare Advantage Plan or Prescription Drug Plan after Oct. 15, you can opt-in to the Medicare Prescription Payment Program.

To opt-in, you can print, fill out and mail a Medicare Prescription Payment Plan Participation Request Form to the address on the form or downloard and complete a fillable form and email to pharmserv@icarehealthplan.org:

If you have questions about the Medicare Prescription Payment Plan, please contact Customer Service by dialing the number on the Back of your ID Card. You can call customer service five days a week, from 8 a.m. to 5 p.m. However, please note that our automated phone system may answer your call during weekends and holidays.

Voluntary Opt-out of the Medicare Prescription Payment Plan

When you opt out of The Medicare Prescription Payment Plan here’s what happens:

  • Going forward, you’ll pay your pharmacy directly for all your covered Part D drug costs. (This also applies to mail order and specialty pharmacies).
  • You will stop purchases added to your balance.
  • You will continue to receive monthly bills for the amount incurred while in the program until your balance is paid.
  • You also have the option to pay the balance in full at any time.

If you choose to participate in the program in the future, you simply opt-in as you did before.

Do I need to sign up every year?

Your participation in the Medicare Prescription Payment Plan (the program) will end on December 31. To continue with the program in the new plan year, you must opt-in again for a January 1 start date.

How does billing work?

In the Medicare Prescription Payment Plan (the program), you will get a monthly bill from iCare instead of paying for your covered Part D prescriptions at the pharmacy.  For your first month, based on your start date in the program, your monthly payment could be as high as your total covered Part D drug costs for that month.

Your monthly bill is based on what you owe for any prescriptions you get, plus any balance from the previous month, divided by the number of months left in the year. Your payment can change every month as you fill new prescriptions or refill existing ones. These will be added to your balance which may change from month to month.

Beginning in 2025, you won’t pay more than $2,000 for out-of-pocket costs for covered Part D drugs. This is true for everyone with Medicare drug coverage, even if you don’t join the program.

It doesn’t cost anything to participate in the program and you won’t pay any interest or fees on the amount you owe.

View monthly cost examples.

Note: Your monthly payment calculation is done every month to capture both your balance and the remaining months left in the year.

If you don’t pay your monthly bill

If you don’t pay your past-due balance, here’s what you can expect:

  • You will continue to receive bills until your past-due balance is paid.
  • There is a 60-day grace period from your payment due date to your termination from the program.
  • You will be ineligible to re-join the program until your past-due balance is paid. 
  • Once your past-due balance is paid, you can rejoin the program anytime.

Note: This only applies to your participation in the Medicare Prescription Payment Plan. Your Medicare drug coverage and other Medicare benefits won’t be affected, and you’ll continue to be enrolled in your plan for your drug coverage.

Find additional resources about this payment option

Here are some contacts that could help you decide if the program is right for you:

Medicare—Visit Medicare.gov (opens in new window), or call 1-800-MEDICARE (1-800-633-4227), 24 hours a day, 7 days a week. TTY users can call 1-877-486-2048.

State Health Insurance Program (SHIP)—Visit shiphelp.org (opens in new window) to get the phone number for your local SHIP and get free, personalized health insurance counseling.

iCare—If you have questions about the Medicare Prescription Payment Plan, please contact Customer Service by dialing the number on the Back of your ID Card. You can call Customer Service five days a week, from 8 a.m. to 5 p.m. However, please note that our automated phone system may answer your call during weekends and holidays.

What if you think there’s been a mistake?

If you disagree with our decision, you have the right to ask iCare for a review. Go to our file a complaint page to submit an appeal. You must submit your appeal within 60 days after the incident or event initiating the grievance.

Some links on this page may take you to iCare non-Medicare product or service pages or to a different website.

Consult your doctor before beginning any new diet or exercise regimen.

This communication does not guarantee benefits and does not indicate all services received will be covered by your plan. Please refer to your Evidence of Coverage or call Customer Service at the number on the back of your iCare ID card to confirm that the service will be covered by your plan.

Leaving iCareHealthPlan.org

By clicking this link, you may be leaving the iCareHealthPlan.org website. Independent Care Health Plan (iCare) only provides these links and pointers for your information and convenience. When you select a link to an outside website, you are leaving the www.iCareHealthPlan.org website.

ProceedCancel