The Medicare Prescription Payment Plan (MPPP) is a program starting in 2025 that helps beneficiaries manage their prescription drug costs by spreading the payments over the calendar year. Here’s a summary of key points:
How it Works:
- Eligibility: Available to people with Medicare Advantage or a Medicare Prescription Drug Plan.
- Monthly Bills: Instead of paying for prescriptions at the pharmacy, you’ll receive a monthly bill from your plan.
- Bill Calculation: The bill is based on the price of your prescriptions and your remaining balance for the year, divided by the months left. The amount can vary if you get new prescriptions or refill existing ones.
- No Cost to Join: There’s no cost or interest for participating, but you will still need to pay your plan premium if applicable.
When MPPP May Not Be the Best Option:
- Low Drug Costs: If your yearly drug expenses are low.
- Consistent Costs: If your monthly drug costs do not change.
- Late Enrollment: Joining late in the year is less beneficial.
- Preference for Current Payment Method: If you prefer not to change your payment system.
- Extra Help or Medicare Savings: If you already receive Extra Help or the Medicare Savings Program, MPPP may not be necessary as your costs are already low.
How to Sign Up:
- Sign-Up Process: You can contact your plan to start participating in the MPPP on January 1st, 2025. After enrolling, you will receive a confirmation letter and the pharmacy will automatically know that you’re participating when you pick up your prescription.
- Billing: After signing up, you will receive monthly bills outlining your prescription costs.
Payment and Reminders:
- If you fail to pay your bill, your plan will send a reminder. If you don’t pay by the specified date on the reminder, you’ll be removed from the MPPP. You will still be required to pay the amount you owe, but you will not be charged any interest or fees, even though the payment is late.
Leaving the MPPP:
- You can leave the MPPP at any time by contacting your plan. If you owe money, you must pay it even after leaving. After leaving, you will resume paying for prescriptions directly at the pharmacy.
This plan is designed to make prescription payments more manageable for those on Medicare by distributing costs over time, but it may not be suitable for everyone, depending on their individual circumstances.