Tips to Save on Medications

There are more ways to save on your Medicare prescriptions than most people realize. Here's what to know.

All month we've been walking through how Medicare Part D works, from formularies to tiers to making sure your medications are covered. We're wrapping up May with something just as important: the practical tools and programs that can lower what you actually pay at the pharmacy.

1. Ask Your Doctor About Generics or Biosimilars

Generic drugs are copies of brand-name drugs and must be proven by the FDA to work the same way. In most cases, they cost significantly less and sit on lower formulary tiers, meaning lower copays for you.

Similarly, biosimilars are lower-cost alternatives to certain biological drugs that work just as well as the original.

If you're on a brand-name or biological medication, it's always worth asking your doctor whether a generic or biosimilar option is available for your condition.

2. Use a preferred pharmacy in your plan's network

Not all pharmacies charge the same under a Medicare drug plan. If your plan has "preferred in-network pharmacies," they have agreed to charge less than other pharmacies in the network, which can mean real savings on your copays or coinsurance.

Many plans also offer mail-order pharmacy programs where you can receive up to a 90-day supply of your maintenance medications delivered to your home, often at a lower cost per fill.

3. Ask about the Medicare Prescription Payment Plan

If you have high prescription drug costs, the Medicare Prescription Payment Plan (MPPP) may help you manage your expenses.

Instead of paying a large amount at the pharmacy all at once, this option allows you to spread your out-of-pocket drug costs across equal monthly payments throughout the year.

It's important to note that this option helps you manage monthly cash flow, it does not reduce or lower your total drug costs. But for people who face large bills early in the year, it can make a real difference in day-to-day budgeting.

4. Ask about the Extra Help program

If your income and resources are limited, you may qualify for Extra Help, also known as the Low-Income Subsidy. This federal Medicare program helps pay Part D premiums, deductibles, and cost sharing.

In 2026, people who qualify typically pay no more than $5.10 for generic drugs and $12.65 for brand-name drugs, regardless of tier. Extra Help is one of the most valuable and underutilized programs in Medicare, and many people who qualify don't know it exists.

Your SGIA Benefit Consultant can help you determine if you qualify for this program.

5. Medicare is now negotiating drug prices

For the first time in Medicare's history, CMS negotiated prices directly with drug manufacturers for 10 high-cost Part D medications. According to CMS, these negotiated prices took effect January 1, 2026, and are expected to save people with Medicare an estimated $1.5 billion in out-of-pocket costs this year.

Some of the drugs affected include common medications for diabetes, blood clots, and other chronic conditions. This program will continue to grow, and more drugs are being added to negotiations each year.

6. Make sure you are in the right plan for you

One of the biggest and most overlooked ways to save is simply being enrolled in the plan that best fits your specific drug needs. A plan with a lower premium may cost you far more overall if your medications sit on higher tiers. This is exactly why having your SGIA Benefit Consultant review your options, not just the headline numbers, matters so much.

We are here to help you save

At SGIA, our Benefit Consultants help you look at the full picture, your medications, your health needs, and your budget, to find the plan that gives you the most coverage for the least out-of-pocket cost. Whether you are new to Medicare or reviewing your current coverage, you don't have to figure this out alone.

Have questions about your drug costs right now? Reach out any time; we're always happy to help. Call us today at 888-284-3314 or visit sgiamedicare.com.