Key Takeaways The Medicare Prescription Payment Plan allows beneficiaries to spread out-of-pocket drug costs into monthly installments instead of paying all at once at the pharmacy. This budgeting tool is available for both Medicare Part D and Medicare Advantage plans but does not reduce the total annual cost of medications. For 2026, all covered drug expenses are capped at a $2,100 out-of-pocket maximum, after which the plan covers 100% of costs for the remainder of the year.