Medicare Prescription Plan

Medicare’s new prescription payment plan is scheduled to take effect as of January 1, 2025. The plan allows taxpayers who have Part D prescription drug coverage to spread their costs over the entire year, rather than paying at once. Participation in the MPPP is voluntary, and taxpayers must elect to participate. On the Medicare plan finder, taxpayers can use a link to determine what their costs would be at each selected pharmacy. Eligible individuals will receive a notice from their prescription drug plan.

We asked two professors and authors of ALM’s Tax Facts with opposing political viewpoints to share their opinions about the impact of Medicare’s new prescription payment plan.

Below is a summary of the debate that ensued between the two professors.