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# Medicare Part D Costs
 /  /  /  / **Medicare Part D Costs**
* Updated on November 21, 2024
* Written By: David Haass
* Reviewed By: Ashlee Zareczny
**Summary:** Recent changes stemming from the Inflation Reduction Act make Medicare Part D plans even more affordable for those on a fixed budget. The average Medicare Part D premium in 2025 is $46.50 with a maximum plan deductible of $590. **Estimated Read Time: 6 min**
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Medicare Part D costs include the premium, deductible, initial coverage limit, coverage gap (donut hole), and catastrophic coverage out-of-pocket threshold. Some of these costs are specific to your plan and will change annually. Thus, reviewing your plan each year during the Annual Enrollment Period is essential.
Below, we review the cost of Medicare Part D in 2025. Remember, Medicare Part D costs can vary by plan and location, so what you spend may look slightly different than your peers.
## Medicare Part D Premium 2025
Medicare Part D prescription drug coverage is available through private insurance companies. These plans pair with Original Medicare (Part A and Part B).
Unlike Medicare Part A and Part B, the federal government does not provide Medicare Part D policies. Therefore, your premium depends on your carrier and plan selection. You will have several policy options within your ZIP Code, and each carrier will set its monthly Medicare Part D premium. It is up to you to decide which option is right for your needs.
In 2025, the average monthly Medicare Part D premium will be approximately $46.50.
Additionally, your premium cost may vary based on your income. If you receive an annual income higher than $103,000 individually or $206,000 as a couple, you will be responsible for paying a higher Medicare Part D premium due to .
The chart below outlines the income brackets and how much you will pay in addition to your Medicare Part D plan’s premium in $46.50.
| 2023 Annual Income: Individual | 2023 Annual Income: Filing Jointly | 2023 Annual Income: Filing Separately | Medicare Part D Premium 2025 |
| --- | --- | --- | --- |
| $0 – $106,000 | $0 – $212,000 | $0 – $106,000 | Plan Premium |
| > $106,000 and < $133,000 | > $212,000 and < $266,000 | – | Plan Premium + $13.70 |
| > $133,000 and < $167,000 | > $266,000 and < $334,000 | – | Plan Premium + $35.30 |
| > $167,000 and < $200,000 | > $334,000 and < $400,000 | – | Plan Premium + $57.00 |
| > $200,000 and < $500,000 | > $400,000 and < $750,000 | > $106,000 and < $394,000 | Plan Premium + $78.60 |
| > $500,000 | > $750,000 | > $394,000 | Plan Premium + $85.80 |
## Medicare Part D Cost: Medicare Part D Coverage Phases
There are four coverage phases for Medicare Part D. These include:
1. Deductible (not applicable on all plans)
2. Initial coverage
3. Coverage gap phase a.k.a. \*
4. Catastrophic coverage\*\*
\*In 2025, the coverage gap (donut hole) coverage phase will be eliminated due to the 
\*\*In 2024, the catastrophic coverage coinsurance will be eliminated.
Each of the four coverage phases has a different dollar amount you must meet to move on to the next phase in your Medicare Part D plan. During each phase, your plan will have a pre-determined amount you must pay for each drug. This amount varies by phase, policy, and carrier.
## Is Medicare Part D Expensive?
What you pay for Medicare Part D will depend on the prescription drugs you take throughout the year. You can find these medication costs outlined in your plan’s formulary.
As mentioned, carriers organize medications into tiers on their formularies. Typically, a Medicare Part D plan will include five levels, or tiers, of drugs.
Medications that fall on the higher tiers (4 and 5) involve higher coinsurance costs and copayments than those on the lower tiers (1 through 3). Private insurers set their premiums, so it pays to compare policies in your area to ensure that you make the right choice for your prescription drug needs.
Remember, Medicare prescription drug plans and Medicare Advantage drug plans vary regarding the medications they cover and the costs you pay. These discrepancies occur despite the prescription drugs being the same.
**Medicare Part D Costs depend on:**
* The medications you take and how frequently you take them
* Whether your pharmacy of choice is within your plan’s network
* If your drugs are on your plan’s formulary
* Whether you choose a stand-alone Medicare Part D prescription drug plan or a Medicare Advantage plan with prescription drug coverage (MAPD)
* If you receive Extra Help with your Medicare Part D costs
Again, one significant Medicare Part D cost you should consider is the monthly premium. In addition, you will also need to pay an annual deductible and copayments/coinsurance.
## What Happens if I Miss a Medicare Part D Cost Payment?
You may have options if you are late or miss a payment for your Medicare Part D prescription drug plan. Medicare has specific rules regarding late and missing payments. However, your carrier chooses how they will proceed.
**These are Medicare’s rules for late Medicare Part D premium payments:**
* You can still receive coverage without penalties
* You get a grace period and a warning
* You receive a letter directing you to contact your plan for resolution
Your plan must notify you before dropping you. Grace periods can be granted and must be at least two months, but they can be more depending on your plan. The grace periods begin on the first day your premium is late.
## Medicare Part D Cost FAQs
### Can my prescription be moved to a lower cost tier group?
If one or more of your prescriptions move to a more expensive formulary tier, you may contact your plan carrier and ask them to move your prescription to a lower-cost tier. However, it is up to the carriers discretion to move the medication into a lower tier.
### My medication’s copayment is higher than retail cost. Will I pay more if I use my Medicare Part D plan?
No, you’ll always pay the lesser of your plan’s copay and retail drug cost. For example, if the plan’s copay for your medication is $39, but the negotiated retail cost is $15, you will only have to pay the retail cost.
### What happens if I cannot afford my prescription medications?
The Extra Help program, or low-income subsidy, is available to qualifying low-income individuals. If you are a Medicare member and meet the program’s requirements, you may be eligible for Extra Help. Those who qualify will get help paying their Medicare Part D costs, which may include cost-sharing, deductibles, and premiums.
## How to Get Help With Medicare Part D Costs in 2025
. It is our job to help keep you up to date and ensure you understand how cost updates impact you as a beneficiary. If you are concerned about your Medicare Part D costs, our licensed agents are here to help you find the most affordable option that will give you the most benefits. They will review all your prescriptions to make sure they are not only covered but will be at the lowest cost to you.
Give us a call now at the number above or use our  to see Medicare Part D rates in your area now.
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### Sources
MedicareFAQ is dedicated to providing you with authentic and trustworthy Medicare information. We have strict sourcing guidelines and work diligently to serve our readers with accurate and up-to-date content.
1. Monthly premium for drug plans, Medicare. Accessed July 2022.
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2. Medicare costs at a glance, Medicare. Accessed July 2022.
Author!!
#### David Haass
 is the Chief Technology Officer and Co-Founder of Elite Insurance Partners and MedicareFAQ.com. He is a member and regular contributor to Forbes Finance Council and stay up-to-date with the latest Medicare trends and changes. He holds a Bachelor of Science in Business Administration and Management from the University of Florida.
Reviewer!!
#### Ashlee Zareczny
Director of OperationsAshlee Zareczny is the Director of Operations for MedicareFAQ. As a licensed Medicare agent in all 50 states, she is dedicated to educating those eligible for Medicare by providing the necessary resources and tools. Additionally, Ashlee trains new and tenured Medicare agents on CMS compliance guidelines. Ashlee is a Medicare expert who specializes in Medicare Supplement, Medicare Advantage, and Medicare Part D education.
## 6 thoughts on "Medicare Part D Costs"
1. **Judith Gozur** says:
   Why is a prescription fee withheld from my SS monthly check when I pay for SilverScript through Aetna, my Medicare Supplement?
   1. !! **Jagger Esch** says:
      Hi Judith! Medicare Supplement plans and Medicare Part D (Rx coverage) will show as two different charges even if they are through the same carrier (like Aetna and Silverscript). Unfortunitely, your Medicare Supplement premium does not include the prescription covered provided through your Part D plan which is why you see the deduction from your SS check each month.
3. **Joyce Murray** says:
   where can I get a formulary list including Tiers
      Drug formularies and tiers can be found in the Plan Finder Tool on 
5. **Jim Curran** says:
   Will my Part B and Part D deductions roll over unchanged to 2022 if I do nothing during the enrollment period?
      Jim, if you did not elect any changes during the Annual Enrollment Period, elections from 2021 will roll over to 2022. For Part D plans it is important to review your coverage annually as the plan formularies do change.
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