How much does Medicare Part D cost?

Medicare Part D helps cover prescription drug costs, but it’s important to understand all the expenses so you can plan ahead. In 2026, the average monthly premium for Part D is $34.50, but actual costs can vary by plan. Most plans have an annual deductible you must meet before coverage starts. After you have reached your deductible, you will pay coinsurance or copays for covered drugs. Once your total yearly out-of-pocket costs reach $2,100, you will not pay anything for your Part D drugs for the rest of the year.

Understanding Medicare Part D costs in 2026

The cost of a Medicare Part D plan can be different for each person. This is because there are several factors that make up your total costs. Part D plans have a monthly premium, which is the amount you pay each month for the coverage. Most plans also have a deductible. This is the amount you must pay for your prescriptions before your plan starts sharing the cost. You’ll also have copays (a set amount per prescription) or coinsurance (a percentage of the cost) each time you fill a prescription. If your income is above a certain level, you may also have to pay an extra amount for your premium each month.

Another important cost factor is the out-of-pocket cap that limits how much you’ll pay in a year for your drugs. Once you reach that limit, your plan pays for your medications for the rest of the year. Together, these parts add up to your total spending. If you take a lot of medications or need costly prescriptions, you may hit the cap faster, but you’ll also get more help from your plan. Medicare Advantage plans that include drug coverage can help lower costs by offering lower premiums, smaller copays, or extra benefits. This is why it’s important to look at all the costs – not just the monthly premium – when choosing a plan.

Medicare Part D monthly premiums

On average, people pay around $34.50 per month for a stand-alone Medicare Part D plan in 2026. Medicare Advantage plans that include Part D coverage do not have a separate Part D premium. Instead, the cost is already built into the plan’s monthly premium. Some Medicare Advantage plans even have a $0 monthly premium, making them an affordable choice. The amount you pay can still vary depending on the plan's drug list, deductible, and copays or coinsurance costs.

Monthly costs can change a lot from plan to plan. Stand-alone Part D plans can range from under $10 to over $100 per month. If your income is above a certain limit, you may have to pay an additional charge called Income-Related Adjustment Amount (IRMAA), which applies to your stand-alone drug coverage. This means people with higher income could pay more each month.

Here is how income can affect monthly costs in 2026 based off of your 2024 tax returns:

Individual tax returns	Joint tax returns	Income- related monthly adjusted amount
$109,000 or less	$218,000 or less	$0.00
$109,001 - $137,000	$218,001 - $274,000	$14.50
$137,001 - $171,000	$274,001-$342,000	$37.50
$171,001 - $205,000	$342,001 - $410,000	$60.40
$205,001 - $499,999	$410,001 - $749,999	$83.30
$500,000 or more	$750,000 or more	$91.00

 

Medicare Part D annual deductibles

In 2026, the maximum deductible for Medicare Part D is $615, but some plans have a lower or $0 deductible. The deductible is the amount you pay out of pocket for your prescriptions before your plan begins to share the cost. For example, if your plan has the full $615 deductible and your first prescription costs $100, you’ll pay the full $100 until you’ve spent $615 that year. After that, your plan’s copay or coinsurance kick in, which can make your costs much lower for the rest of the year.

Medicare Part D copays and coinsurance

Medicare drug plans place medications into different tiers in their list of covered drugs called formulary. Lower tiers usually include generic drugs and have the lowest or $0 copays, while higher tiers have brand-name or specialty drugs and cost more. Your out-of-pocket cost for drugs depends on its tier, so two people with the same drug plan could pay different amounts for different prescriptions.

Costs can also change based on whether you use a preferred pharmacy. Many plans work with certain pharmacies to offer lower copays or coinsurances for covered drugs. Using a non-preferred pharmacy could mean paying more for the same medication. Checking both the drug tiers and preferred pharmacy list can help you save money each month.

Here is a sample of drug tiers and pharmacy costs for a 30-day supply: 

Drug Tier	Drug Type	Preferred Pharmacy Copy or Coinsurance	Non-preferred Pharmacy Copay or Coinsurance
1	Preferred Generic	$0 copay	$15 copay
2	Generic	$0 copay	$20 copay
3	Preferred Brand	24% coinsurance	24% coinsurance
4	Non-preferred Brand	29% coinsurance	29% coinsurance
5	Specialty	27% coinsurance	27% coinsurance

 

Out-of-pocket maximum and coverage protection

In 2026, Medicare Part D has a $2,100 cap on out-of-pocket costs for prescription drugs. This means that once you have paid a total of $2,100 for covered prescriptions, you will no longer pay for your drugs. The amount you pay towards the cap includes your deductibles, copays, and coinsurance.

After you reach the $2,100 limit, your Part D plan will cover 100% of your covered prescription costs for the rest of the year. This can be especially helpful for people who take expensive medications or have ongoing health needs. This also makes it easier to predict your yearly spending, since you know there is a maximum you will pay.

Medicare prescription payment plan

The Medicare Prescription Payment Plan is an option for people with high drug costs who are not eligible for Extra Help (LIS). It lets you spread your out-of-pocket prescription costs over the year instead of paying large amounts all at once. This can make budgeting for prescriptions easier and help avoid unexpected costs.

Part D late enrollment penalty

The Medicare Part D late enrollment penalty is an extra cost added to your monthly premium if you go without Part D or other creditable drug coverage for 63 days or more after you’re first eligible. The penalty is calculated by multiplying 1% to the “national base beneficiary premium” for each month you went without coverage. In 2026, the national base premium is $38.99, so each uncovered month adds about $.38 to your monthly premium. This amount is rounded to the nearest $.10 and is added to your premium for as long as you have Part D coverage, unless you qualify for a Special Enrollment Period.

For example, if you went without coverage for 20 months, your penalty would be 20% of $38.99, which is about $7.79, rounded to $7.80. Over ten years, that adds up to $936 in extra costs, just for the penalty. This is why it is important to enroll on time or maintain creditable drug coverage (like employer health plans) to avoid paying more for life.

Extra Help and other savings options

The Extra Help program is a Medicare Assistance program that helps people with limited income and resources pay for their Part D prescription drug costs. It can cover part or all of your monthly premium, deductibles, and copays and coinsurance. Some people get Extra Help automatically and others need to apply. Many people who qualify don’t know they’re eligible, so it’s worth checking even if you think you might not qualify.

You may qualify if you:

• Have limited income (this amount changes yearly)
• Have limited resources (like retirement savings and investments)
• Are enrolled in Medicare Part A and Part B
• Are a resident in one of the 50 states or D.C.

You will get Extra Help Automatically if you:

• Have full Medicaid coverage
• Get help from your state paying your Part B premium (such as Medicare Savings Program)
• Get Supplemental Security Income (SSI) benefits from Social Security

What Medicare Part D doesn’t cover

Medicare Part D covers many prescription medications, but there are certain types of drugs it does not pay for, including:

• Drugs not on your plan’s formulary (list of covered medications)
• Drugs covered under Part B, such as chemotherapy or injectable drugs given in a doctors office
• Drugs for weight loss or weight gain
• Drugs for erectile dysfunction
• Medications for cosmetic purposes (like hair growth)
• Over-the-counter (OTC) medications, vitamins, and supplements
• Drugs purchased outside of the U.S.

FAQs about Medicare Part D

What is the premium for Medicare Part D?

In 2026, the average monthly premium for a stand-alone Part D plan is $34.50, though costs vary by plan. Medicare Advantages plans often include Part D coverage with no separate Part D premium, so your drug coverage cost is built into the plan premium.

Can I just buy Medicare Part D?

Yes, if you have Original Medicare (Medicare Parts A and B), you can enroll in a stand-alone Part D plan for prescription coverage.

How much does Medicare Part D usually cost?

Costs vary by plan, but you’ll pay a monthly premium (if applicable), plus any deductible, copays, or coinsurance your plan requires.

What is the true out-of-pocket cost for Medicare Part D?

While plan premiums may vary depending on your income and whether you have a stand-alone Part D plan or a Medicare Advantage plan, the most you will pay out of pocket for your prescriptions in 2026 is $2,100. After you reach this limit, your Part D plan covers 100% of covered drug costs for the rest of the year.

Final thoughts on managing your Medicare Part D costs

Medicare Part D costs can look different for everyone, depending on your plan, income, and the medications you take. In 2026, the yearly out-of-pocket maximum is $2,100, which can make costs more predictable. You may also qualify for programs like Extra Help to lower your expenses, and using plan comparison tools can help you find the best fit for your budget and health needs. Medicare Advantage plans with drug coverage , like UPMC for Life, often include these costs in a single premium, which can help simply things. Taking the time to review your options now can save you money and stress all year.

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