New Medicare Prescription Payment Plan coming Jan. 1, 2025

In alignment with Inflation Reduction Act (IRA) requirements, the new Medicare Prescription Payment Plan (M3P) launches on Jan. 1, 2025.

What’s M3P?

The Centers for Medicare and Medicaid Services’ (CMS) Medicare Prescription Payment Plan is a new program that allows anyone with a Medicare drug plan, or a Medicare health plan with drug coverage, to pay monthly installments directly to their health plan for their covered prescription drugs, rather than paying their Part D cost share at the pharmacy.

M3P is a voluntary program and free to your Medicare patients, meaning they won’t be charged any interest or fees for participating.

Will M3P save your patients money on their prescription drugs?

While M3P won’t discount the out-of-pocket costs of your patients’ prescription drugs, it can help them better manage costs by spreading the payments out over the course of the calendar year, rather than paying their Part D cost share upfront. Note: Your patients’ monthly payments could vary each month depending on new prescriptions and how many months are left in the calendar year. Because of this, they may not know their exact bill ahead of time.

Is M3P right for all your Medicare patients?

No. M3P is most beneficial for your patients being treated with high-cost, specialty drugs. It may not be helpful if they meet any of the following criteria:

  • They’re included in the Medicare Extra Help program
  • They qualify for a Medicare Savings Program
  • They get help paying for their drugs from other organizations, like a State Pharmaceutical Assistance Program (SPAP) or other health coverage
  • Their yearly drug costs are low
  • Their drug costs are the same each month
  • They sign up for the payment option late in the calendar year (after September)

Will this change how you write prescriptions?

No. Your patients will still get their medications from their pharmacy.

How do patients sign up?

For more information on M3P, including how to enroll, refer your patients to our M3P member webpage.