Starting January 1, 2025, the Medicare Prescription Payment Plan (M3P) will offer you a new way to manage your out-of-pocket prescription drug costs.
Instead of paying the full cost of your medications upfront at the pharmacy, you can make monthly payments throughout the plan year. This option allows you to spread out the costs, making it easier to manage your budget, especially if you have high expenses.
How the Payment Plan Works
If you decide to participate in this program, you will pay $0 at the pharmacy for covered Part D drugs. Instead, Elderplan will bill you monthly for any cost-sharing amounts you owe. Elderplan will handle the payments to pharmacies, ensuring that everything runs smoothly and efficiently.
Who Will Benefit from This Plan?
This plan is available to Elderplan members with drug coverage, but it’s especially helpful if you face high out-of-pocket costs early in the plan year. By spreading these expenses over several months, the program makes prescription drugs more affordable and accessible.
However, it’s important to remember that while this plan helps manage your cash flow, it doesn’t reduce the total out-of-pocket costs you’ll pay over the year.
How is Your Monthly Bill Calculated?
Your monthly bill will be based on what you would have paid for any prescriptions you get, you maximum out-of-pocket premium plus any balance from the previous month, divided by the number of months left in the year.
Your payments might change every month, so you may not know exactly what your bill will be ahead of time. If you fill a new prescription or refill an existing one, your future payments might increase because there are fewer months left in the year to spread out the remaining costs.
See a quick overview of how monthly bills are calculated.
How Can You Enroll?
Starting with the 2025 plan year, you can opt into the Medicare Prescription Payment Plan through the M3P Member Portal. You can enroll before the plan year begins or at any point during the year.
How to Pay Bills
You can pay by
- Calling CVS Caremark at 1-866-490-2102 (TTY: 711), or by
- Mailing your payment to:
Elderplan
Medicare Prescription Payment Plan
P.O. Box 7
Pittsburgh, PA 15230
3. Or visiting the online member portal at Caremark.com/mppp
For more information you can also read the Medicare fact sheet.
