Last year. Medicare added a new option that could improve the mental, physical and financial health of tens of millions of seniors. However, few beneficiaries have signed up for the program because most don’t know it exists.
It’s up to leaders in Congress and at the Centers for Medicare & Medicaid Services to change that by providing the public with timely and accurate information about the program.
Under the new Medicare Prescription Payment Plan, often dubbed MP3, beneficiaries on Medicare Part D can now opt to spread their out-of-pocket costs for life-saving medications into manageable monthly payments. Older adults and individuals with a disability may no longer have to drain a savings account in January to get an essential medication or choose between a refill and the week’s groceries.
Nearly nine in 10 adults aged 65 and older take prescription drugs. For years, far too many have been blindsided by sticker shock at the pharmacy counter, even when they have Medicare Part D coverage.
At the start of each year, when deductibles reset, beneficiaries may face hundreds or thousands of dollars in upfront costs. For those living on fixed incomes, that up-front expense can be financially crushing. In fact, a 2023 JAMA study found that one in five older adults reported rationing, delaying or skipping medications altogether due to cost burdens.
When the choice is between paying rent, putting food on the table, and filling a prescription, health too often gets sacrificed. That’s not a failure of personal budgeting but a failure of public policy.
The Inflation Reduction Act addressed this in two pivotal ways: by creating the MP3 program and capping annual out-of-pocket drug spending. In 2026, for instance, out-of- pocket costs will be capped at $2,100 for Medicare beneficiaries.
Under MP3, beneficiaries can opt into a monthly payment plan that smooths prescription costs throughout the year. Instead of paying a large lump sum in January or February, enrollees can now budget for their medications, much like they would for utility bills or mortgage payments.
By spreading costs, MP3 prevents seniors from rationing pills or skipping treatment.
However, MP3 isn’t automatic; beneficiaries must actively opt in, either during the fall open enrollment period that began last October or after reaching a certain out-of-pocket threshold in 2026.
Most people are unaware that MP3 exists. In fact, according to a recent KFF study, nearly seven in 10 beneficiaries don’t even compare plans during the open enrollment period. A new IQVIA analysis of claims data revealed that only 0.53 percent of beneficiaries have filled one prescription using MP3, a percentage significantly below initial expectations. Most older adults on Medicare aren’t properly evaluating healthcare options that could save them money.That’s where Congress can step in.
The Increasing Medication Access for Seniors Act of 2025 is designed to ensure MP3 can deliver on its potential. The bill directs the CMS to conduct robust outreach so every eligible senior knows about this new option. It also requires the agency to regularly issue public reports, beginning in March 2026, detailing enrollment numbers, the barriers beneficiaries face, and the program’s performance.Transparency is key to maximizing MP3‘s effect. With solid data, policymakers and advocates can determine whether the cost-smoothing feature is reaching those who need it and take action if it is not.To that end, the bill would proactively remove barriers by streamlining enrollment, making the sign-up process simpler, faster and more accessible. For many seniors — nearly 95 percent of whom are managing at least one chronic illness — reducing administrative hurdles can be just as important as lowering prices.
Across party lines, Americans agree that prescription drugs should be affordable, and no senior should have to skip doses to make ends meet. The Medicare Prescription Payment Plan is a strong step in the right direction. It’s up to CMS and Congress to raise awareness among more seniors about the option, and ensure that older Americans can afford the medications that keep them healthy and independent.
