How to Find a Cheaper Medicare Prescription Drug Plan

Dear Savvy Senior,

What’s the easiest way to compare Medicare Part D prescription drug plans? My Part D premium is increasing again in 2025, so I would like to use the fall open enrollment to find and sign up for a cheaper plan.

     --Shopping Around

Dear Shopping,

I’m happy to hear you’re comparing your Medicare coverage options this fall! Research shows that many Medicare beneficiaries with Part D coverage can lower their prescription drug costs by shopping among plans each year during the open enrollment season, which runs Oct. 15 to Dec. 7.

There could be another Part D plan in your area that covers the drugs you take with fewer restrictions or with lower costs. You never know until you look.

You’ll also be happy to know that thanks to the Inflation Reduction Act, in 2025 annual out-of-pocket costs will be capped at $2,000 for all Medicare Part D beneficiaries.

Here are some tips and tools to help you shop and compare Part D plans.

Plan Finder Tool

If you have internet access and are comfortable using a computer, you can easily shop for and compare all Medicare drug plans in your area and enroll in a new plan online, and it only takes a few minutes.

Just go to Medicare’s Plan Finder Tool at Medicare.gov/find-a-plan. You can do a general search on the right side of the page, under the title “Continue without logging in.” If you wish to save your drugs and pharmacy information, you can log into or create your Medicare account on the left side of the page.

Next, type in your ZIP code and choose the type of coverage you’re looking for, enter the drugs you take, choose the pharmacies you use, and indicate whether you are interested in a mail order option.

The plan finder will then display results for plans in your area. Be aware that a plan may not cover all the drugs you take, but it may cover alternatives. It will also tell you if the plan has a deductible and how much the monthly premium is.

Initially, the plans will be sorted by “lowest drug + premium costs.” This is the closest estimate to what you may pay out of pocket for your Part D coverage for the year. You can select “plan details” to find out more specifics about coverage, including any coverage restrictions that might apply to your drugs.

Before enrolling, it is a good idea to call the plan directly to confirm any information you read on plan finder, as information may not be completely up to date.

If you need help, you can call Medicare at 800-633-4227 and they can do this for you over the phone. Or contact your State Health Insurance Assistance Program, which provides free unbiased Medicare counseling. Find your local county SHIBA office by calling the Washington state Insurance Consumer Hotline at 800-562-6900 or visit https://www.insurance.wa.gov/find-local-shiba-office to find the office located in your county.

SHIBA advisors are also available through many local libraries and other institutions. Check the SHIBA website, or you can call your friendly local librarian to ask if they have any SHIBA help sessions scheduled or can do a search for you to find help sessions in your area. 

Any changes to coverage you make will take effect Jan. 1, 2025. If you take no action during open enrollment, your current coverage will continue next year (as long as the current plan you have is offered next year).

Extra Help

If you’re lower-income and having a hard time paying your medication costs, you may be eligible for Medicare’s “Extra Help” program. This is a federal low-income subsidy that helps pay Part D premiums, deductibles and copayments.

To be eligible, your annual income must be under $22,590 or $30,660 for married couples living together, and your assets (not counting your home, personal possessions, vehicles, life insurance policies or burial expenses) must be below $17,220 or $34,360 for married couples. For more information or to apply, call Social Security at 800-772-1213 or visit SSA.gov/medicare/part-d-extra-help.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book.