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Part D Drug Tiers: Brand vs. Generic Costs (2026)

Part D plans sort drugs into tiers that set your copay. Here's how tiers work, why the same drug can cost different amounts, and how to shift to a cheaper tier.

By Jordan Jenkins, Licensed Insurance Advisor, Wyoming & UtahJuly 23, 20264 min read

The short answer

Every Part D plan sorts its covered drugs into tiers, and the tier a drug is on sets your copay. Lower tiers — usually preferred generics — cost the least; higher tiers — brand-name and specialty drugs — cost more. The same medication can be on different tiers across plans, which is a big reason your drug costs vary from plan to plan.

Understanding tiers helps you predict your costs and spot chances to pay less.

How tiers set your cost

A typical plan has several tiers, from preferred generics up through non-preferred and specialty drugs, each with its own copay or coinsurance. A generic on tier 1 might cost a few dollars, while a brand on a higher tier costs much more. Because plans place the same drug differently, the tier is where a lot of the price difference between plans lives.

Our guide to Part D formularies and drug tiers shows how to read a plan's tier structure so you know what each of your drugs will cost.

How to move to a cheaper tier

The most reliable way to lower a drug's tier cost is to ask your doctor whether a generic or a therapeutically similar lower-tier drug would work for you — often it will, at a fraction of the cost. You can also compare plans that place your specific drugs on lower tiers. If a needed drug is on a high tier with no alternative, a formulary exception is sometimes possible.

Small tier changes across a few regular prescriptions add up over a year. Our doctor and drug coverage tool helps you find the plan that tiers your drugs most favorably.

Frequently Asked Questions

What are Part D drug tiers?

Categories a plan sorts covered drugs into, each with its own copay. Lower tiers (preferred generics) cost the least; higher tiers (brand and specialty drugs) cost more.

Why does the same drug cost different amounts on different plans?

Because plans place the same drug on different tiers. A drug that's a low-cost tier on one plan may be a higher tier on another, changing your copay.

How can I lower my drug tier costs?

Ask your doctor about generic or lower-tier alternatives, compare plans that tier your drugs favorably, and consider a formulary exception if a needed drug is high-tier with no alternative.

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