In 2026, if you are enrolled in a Medicare Part D plan, you will pay no more than $2,100 out-of-pocket costs for prescription drugs. This $2,100 annual cap on out-of-pocket payments in 2026 is a $100 increase from the $2,000 out-of-pocket spending threshold in 2025. There will be no cost for Part D drugs once you reach the $2,100 out-of-pocket threshold in 2026.

If you are enrolled in a Medicare Part D or Medicare Advantage plan, you are eligible to opt in to a voluntary program that allows you to evenly distribute or smooth out-of-pocket prescription drug costs in predictable monthly installments payable to your Medicare Part D plan. To take part in this payment plan, you will need to opt in through your Medicare Part D plan directly. Here are some other helpful tips about the program:

• The Medicare Prescription Payment Plan does not lower out-of-pocket costs, but helps spread existing costs evenly throughout the plan year
• Medicare Prescription Payment Plan participants do not pay their pharmacy for Medicare Part D–covered drugs; instead, they will pay their Medicare Part D plan directly
• Monthly bills are not sent until the Medicare Prescription Payment Plan participant incurs out-of-pocket costs

Premiums for Medicare Part D and Medicare Advantage plans may increase in 2026. If you are enrolled in Medicare Part D, review your plan during Medicare’s Open Enrollment period to better understand your premium, coverage, and out-of-pocket costs. Open Enrollment for 2027 occurs from October 15, 2026, to December 7, 2026.