Medicare Part D costs for 2026

The four components of Part D costs

1. Monthly premium

This is the amount you pay each month to have Part D coverage, regardless of whether you fill any prescriptions. Premiums vary widely from plan to plan — some plans have premiums as low as $0, while others can be $80 or more per month. People with higher incomes may pay an additional amount called IRMAA (Income-Related Monthly Adjustment Amount).

Learn more about Part D premiums →

2. Annual deductible

This is the amount you pay out of pocket for your prescriptions before your plan starts to share costs. Not all plans have a deductible, and some only apply it to certain drug tiers. The maximum allowable Part D deductible for 2026 varies by plan.

Learn more about the Part D deductible →

3. Copays and coinsurance

After you meet your deductible (if your plan has one), you share the cost of your drugs with your plan. This comes in two forms:

• Copay — a flat amount per prescription (e.g., $10 for a generic drug)
• Coinsurance — a percentage of the drug's cost (e.g., 25% of a Tier 3 drug)

Copays are more common for lower-tier (cheaper) drugs, while coinsurance is typically applied to higher-tier (more expensive) drugs.

4. Out-of-pocket cap

In 2026, once your total out-of-pocket spending on covered drugs reaches $2,100, you enter the catastrophic coverage phase and pay $0 for covered drugs for the rest of the year. This cap was introduced by the Inflation Reduction Act and is one of the most significant recent improvements to Part D.

Learn more about the out-of-pocket cap →

The three coverage phases

Phase	What happens	What you pay
1. Deductible	You pay full price for drugs until you meet your plan's deductible	100% of drug costs
2. Initial coverage	You and your plan share costs	Copays or 25% coinsurance
3. Catastrophic	You've reached the $2,100 out-of-pocket cap	$0 for covered drugs

Ways to lower your costs

• Use preferred pharmacies — many plans offer lower copays at specific pharmacies
• Ask about generic alternatives — generic drugs are typically on lower, cheaper tiers
• Use mail-order pharmacy — 90-day supplies by mail often cost less than monthly fills
• Check if you qualify for Extra Help — the low-income subsidy can cover most or all Part D costs
• Enroll in the Payment Plan (M3P) — spread your out-of-pocket costs into monthly installments

More ways to save on prescriptions →

Check if you qualify for Extra Help →