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Nerdy takeaways
- Medicare Part D plans cost an average of $34.50 per month in 2026.
- $0-premium plans are available in 32 states and Washington, D.C. in 2026.
- Other Medicare Part D costs to consider are deductibles, copays and coinsurance.
- People who enroll late or make very high taxable income might pay additional costs for Medicare Part D coverage.
Medicare Part D prescription drug plans are sold by private health insurance companies, and their premiums vary by policy. The average Medicare Part D premium is $34.50 in 2026, according to the Centers for Medicare & Medicaid Services (CMS).
You can find some Part D plans much cheaper and others much more expensive than that average. Some Medicare Part D plans have $0 premiums.
Medicare Part D premiums range from $0 to $238.60 per month in 2026 for stand-alone plans. Additional charges apply if you enroll late, have an extended gap in drug coverage or have a high taxable income.
Compare Medicare Part D Plans
| Insurance company | CMS Star Rating | Out-of-pocket costs | Member experience |
|---|---|---|---|
| 3 /5 | Lower than average | 3 (Average) | |
| 3.5 /5 | Varies | 3.5 (Above average) | |
| 2.5 /5 | Average | 2 (Below average) | |
| 2.37 /5 | Average | 2.29 (Below average) |
What is Medicare Part D?
Medicare Part D is Medicare’s prescription drug benefit. It helps cover the costs of outpatient prescription drugs, something that’s not covered by Medicare Part A or Part B, which cover inpatient and outpatient health care.
For people with Original Medicare (Part A and/or Part B), purchasing a Part D plan adds important prescription coverage to your overall health insurance protection.
Medicare Advantage plans, a bundled alternative to Original Medicare sold by private health insurance companies, usually include prescription drug coverage, so you don't need to buy a Medicare Part D plan. (In most cases, if you buy a separate Medicare Part D plan, you lose your Medicare Advantage coverage.)
Is Medicare Part D free?
No, Medicare Part D isn't free. But in 2026, at least one $0-premium plan is available in 32 states and Washington, D.C.
Most plans do have a monthly premium. And all plans have other costs beyond premiums, such as copays, coinsurance and deductibles.
How much does Medicare Part D usually cost?
Monthly premiums Average of $34.50 in 2026.
Annual deductible Up to $615 in 2026.
Copays/coinsurance Vary by plan, drug and/or pharmacy.
How much does Medicare Part D cost?
As you’re shopping for Part D plans, make sure you understand the costs of what you’re getting.
- Premium: The amount you must pay per month for the drug plan.
- Deductible: The amount you must pay out of pocket before your insurance plan pays for covered drugs.
- Out-of-pocket drug costs: The amounts you must pay as a copay or coinsurance when you fill a prescription.
Make sure you factor all three types of costs into your decision — you may find that drug costs are lower on one plan but the amount you spend on the monthly premiums is higher than a comparable plan. Consider the sum of all three parts in your decision.
You can enter information about your medications and pharmacies to see what you would pay with various plans, including premiums, deductibles, copays and coinsurance, in Medicare’s plan finding tool.
Each Medicare Part D plan determines its own premium, which is the cost you pay for Medicare Part D per month. The average monthly premium for Medicare Part D plans is $34.50 in 2026, according to the CMS data. Part D premiums can range from $0 to $238.60 in 2026.
Deductible
The maximum deductible is $615 in 2026. Some Medicare Part D plans have deductibles as low as $0.
In general, plans with lower premiums have higher deductibles. But no plan can charge more than the maximum rate determined by the CMS. While the upfront premium costs might be lower, the coverage won't kick in until you hit the deductible. However, your drugs are often favorably priced because you have the insurance.
Copays and coinsurance
After you meet your deductible, your Medicare Part D plan will start to pay for its share of your prescriptions. But you’ll often have to pay either a copay (a set price, such as $10) or coinsurance (a percentage of the cost of the drug, such as 25%) when you fill a prescription.
What you’ll pay depends on the plan, the pharmacy and where the drug falls on the formulary, the plan’s tiered list of covered drugs. Drugs on Tier 1 and Tier 2 usually have lower out-of-pocket costs, whereas drugs on Tiers 3 through 5 might be much more expensive. Some plans might also add one or more tiers after Tier 5 with special pricing for specific drugs.
Here’s an example of what copays and coinsurance might look like at a preferred pharmacy for a Georgia resident with a $0-premium Wellcare Value Script plan in 2026:
- Tier 1 (Preferred generic drugs): $0.
- Tier 2 (Generic drugs): $3.
- Tier 3 (Preferred brand drugs): 25%.
- Tier 4 (Non-preferred drugs): 40%.
- Tier 5 (Specialty and high-cost drugs): 25%.
- Tier 6 (Certain drugs used to treat chronic conditions): $11.
» MORE: What you'll pay for Medicare
What is the Medicare Part D cap?
Medicare Part D’s out-of-pocket costs are capped at $2,100 in 2026. Once your qualifying deductibles, copays and/or coinsurance for covered drugs reach this limit, you’re done for the year. (You do still have to pay premiums, plus out-of-pocket costs for other parts of Medicare.)
Shopping for Medicare Part D plans? We have you covered.
| MEDICARE PART D covers outpatient prescription drugs for people on Medicare. Compare options from our Medicare Part D roundup. | |
| Best for low premiums | Best for low out-of-pocket costs |
| Best for generic drugs | Best for low deductibles |
If your income exceeds a certain amount, you'll pay a surcharge on your Medicare Part D insurance. This surcharge is known as the Part D income-related monthly adjustment amount (IRMAA). It's separate from your Part D premium — the IRMAA goes directly to Medicare, not to your Part D insurance company.
High-income earners must pay the Part D IRMAA whether they choose a Medicare Part D plan or a Medicare Advantage plan that includes prescription drug coverage. The Part D IRMAA is never paid to your insurance company and is usually deducted from your Social Security check. If you aren’t yet collecting Social Security benefits, you’ll pay the additional charge directly to the Social Security Administration.
2026 Medicare Part D IRMAA
In 2026, beneficiaries whose 2024 income exceeded $109,000 (individual return) or $218,000 (joint return) will pay an added amount on top of plans' premiums ranging from $14.50 to $91 per month, depending on income.
See 2026 Medicare Part D IRMAA levels
| If your income in 2024 was this ... | You'll pay this each month in 2026 | ||
| Individual tax return | Married filing jointly | Married filing separately | Medicare Part D cost |
| $109,000 or less. | $218,000 or less. | $109,000 or less. | Your plan premium. |
| Above $109,000 up to $137,000. | Above $218,000 up to $274,000. | Not applicable. | $14.50 plus your plan premium. |
| Above $137,000 up to $171,000. | Above $274,000 up to $342,000. | Not applicable. | $37.50 plus your plan premium. |
| Above $171,000 up to $205,000. | Above $342,000 up to $410,000. | Not applicable. | $60.40 plus your plan premium. |
| Above $205,000 and less than $500,000. | Above $410,000 and less than $750,000. | Above $109,000 and less than $391,000. | $83.30 plus your plan premium. |
| $500,000 or above. | $750,000 or above. | $391,000 or above. | $91.00 plus your plan premium. |
Source: Medicare.gov
Medicare Part D Extra Help
Extra Help is a Medicare program that can help qualifying low-income members pay for the costs of Medicare Part D. This program can lower your Medicare Part D premiums and help cover your deductible, copays and coinsurance.
You’ll be enrolled automatically if you meet one of the following requirements, according to Medicare.gov:
- You receive full Medicaid coverage.
- You receive Supplemental Security Income (SSI) payments from Social Security.
- You get help paying your Part B premiums from your state’s Medicare Savings Program.
If you don’t meet any of these requirements, you can still apply for the Extra Help program. You should consider applying if your income was below $23,475 for an individual or $31,725 for a married couple in 2025 and you meet certain resource limits.
What is the Medicare Prescription Payment Plan?
Since 2025, there’s a new way to pay for out-of-pocket costs for Medicare Part D: the Medicare Prescription Payment Plan. With this option, instead of paying out of pocket at the pharmacy, you split your out-of-pocket costs up and pay them over time as monthly bills.
All Medicare Part D plans must offer the Medicare Prescription Payment Plan as an option, and there’s no cost to participate. You won’t save money, either — it’s only a change to how you pay, not to what you owe.
If you’re interested, contact your Medicare Part D plan by phone or visit its website to sign up.
What about the Part D late-enrollment penalty?
Medicare imposes a late-enrollment penalty if you go without Medicare Part D or other qualifying prescription drug coverage for a period of 63 days or more after the end of your Medicare initial enrollment period. This period generally starts three months before the month you turn 65 and ends three months after your birthday month.
You pay the Medicare Part D penalty in addition to your monthly premium cost for as long as your Medicare drug coverage continues.
The penalty is 1% of the national base beneficiary premium — $38.99 in 2026 — per full month that you were eligible to enroll but didn’t. There’s no cap on the number of months.
For example, if you thought you didn’t need a Part D plan because you weren’t taking any prescriptions, then 72 months later you sign up because you need an expensive drug, you’ll be hit with a penalty equal to 72% of the national base beneficiary premium every month. That would be an extra $28.10 per month in 2026, and the penalty would continue as long as you have Medicare Part D, going up as the national base beneficiary premium rises over time.
How to avoid the Part D late-enrollment penalty
Here’s how to avoid the Medicare Part D penalty, according to CMS:
- Enroll in Medicare Part D or a Medicare Advantage prescription drug plan as soon as you become eligible for Medicare.
- If you’ve lost your prescription plan, either due to an employer change or because your plan was discontinued, enroll in Medicare drug coverage immediately.
- Keep good records of your drug insurance history so you’ll be able to provide proof of continuous previous coverage.
If you think Medicare has penalized you in error, you can request a reconsideration. You’ll have 60 days from the date you receive notification about the penalty to respond, and you’ll need to send the documentation that supports your case. Usually, you’ll receive a decision within 90 days.
Medicare Part D companies
Check out NerdWallet's reviews of major Medicare Part D companies.
The parts of Medicare
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- 1. Centers for Medicare & Medicaid Services. Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2026. Accessed Nov 20, 2025.
- 2. Centers for Medicare & Medicaid Services. Parts of Medicare. Accessed Nov 20, 2025.
- 3. Centers for Medicare & Medicaid Services. How to Get Prescription Drug Coverage. Accessed Nov 20, 2025.
- 4. Centers for Medicare & Medicaid Services. Yearly Deductible for Drug Plans. Accessed Nov 20, 2025.
- 5. Centers for Medicare & Medicaid Services. What Medicare Part D Drug Plans Cover. Accessed Aug 20, 2025.
- 6. Centers for Medicare & Medicaid Services. Costs in the Coverage Gap. Accessed Nov 20, 2025.
- 7. Centers for Medicare & Medicaid Services. Help with drug costs.
- 8. Centers for Medicare & Medicaid Services. What's the Medicare Prescription Payment Plan. Accessed Aug 20, 2025.
- 9. Centers for Medicare & Medicaid Services. Part D Late Enrollment Penalty. Accessed Aug 20, 2025.
- 10. Centers for Medicare & Medicaid Services. 3 Ways to Avoid the Part D Late Enrollment Penalty. Accessed Aug 20, 2025.
