The short answer
Most Part D plans have a pharmacy network with two tiers: preferred and standard. Filling the exact same prescription at a preferred pharmacy usually costs less — sometimes much less — than at a standard one, even though nothing else changes. It's one of the easiest ways to lower your drug costs, and a lot of people don't realize their pharmacy choice matters.
Same plan, same drug, different pharmacy, different price. Knowing your plan's preferred pharmacies can save real money.
How pharmacy tiers work
Plans negotiate lower prices with certain pharmacies and designate them preferred, passing you a lower copay when you use them. Standard in-network pharmacies still work, but at a higher copay. Out-of-network pharmacies may not be covered at all. So your plan has a preferred list, and using it is where the savings are.
The preferred pharmacies differ by plan, which is another reason your pharmacy should factor into which plan you choose. Our guide to choosing a Part D plan explains how to weigh this.
How to use it
Find out which pharmacies are preferred on your plan and fill your prescriptions there when convenient. If your favorite pharmacy is only standard on your plan, it may be worth switching pharmacies — or, at the next open enrollment, choosing a plan where your preferred pharmacy is in the preferred tier.
This small change can noticeably lower your yearly costs with no downside. Our doctor and drug coverage tool helps you see the pharmacy pricing on your plan.
Frequently Asked Questions
What is a preferred pharmacy on Part D?
A pharmacy your plan has designated for lower copays. Filling the same prescription there usually costs less than at a standard in-network pharmacy.
How much can a preferred pharmacy save me?
It varies by plan and drug, but the difference can be significant for the same medication — one of the easiest ways to cut your Medicare drug costs.
What if my pharmacy isn't preferred on my plan?
You can switch to a preferred pharmacy, or at open enrollment choose a plan where your preferred pharmacy is in the preferred tier.
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