How to Save Money on Your Medicare Prescription Drugs

If you're an older American, it doesn't matter whether you carry Medicare Part D prescription coverage or you're taking on the cost of prescription drugs on your own -- no one has to tell you how expensive it can be. Even with Part D, your deductible can be as much as $615 annually, and your out-of-pocket spending must reach $2,100 before hitting the catastrophic coverage stage, during which your prescriptions are free.

Image source: Getty Images.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Chances are, you've spent years saving and investing for retirement and don't want a large portion of what you've worked for to go toward medical expenses. Fortunately, there are ways to cut the cost of your prescription drugs. These six tips can help you get started.

1. Compare Part D plans annually: Medicare Part D plans change annually. Everything -- from the medications it covers to how much it costs to stay on the plan -- is subject to change. The plan that was most cost-effective for you this year may no longer be the best choice. Use the annual enrollment period (Oct. 15 through Dec. 17) to compare plans based on your specific medications. Medicare's Plan Finder tool at Medicare.gov allows you to enter all your prescriptions to learn which plan offers the lowest total cost.
2. Ask for generic alternatives: Whenever your doctor prescribes a new medication, ask whether a generic is available. While generic medications contain the same active ingredients as brand-name drugs, they cost significantly less. In fact, a generic can be up to 85% less expensive than the name-brand you were prescribed. If there's no generic available, ask your doctor about different medications that treat the same condition but may be less expensive.
3. Find out if there's a higher-dose pill you can split: Ask your healthcare provider if there's a higher dose of the medication that they've prescribed. If so, find out what the price is and if it's something you can split in half so that the prescription lasts twice as long.
4. Take advantage of the government's "Extra Help" program: If you're low-income and meet resource limitations, Medicare's Extra Help program can help you manage the high cost of healthcare in retirement by covering deductibles and copayments. In addition to meeting income limitations, you must live in the U.S. and be enrolled in (or eligible for) Part D.
5. Use mail-order pharmacies: Most Part D plans offer 90 days' worth of your prescriptions through mail-order pharmacies. Not only are 90-day supplies convenient, but they're often less expensive than three 30-day supplies at retail pharmacies.
6. Seek out patient assistance programs: Pharmaceutical manufacturers frequently provide programs for those who can't afford their medications. Websites like RxAssist.org and NeedyMeds.org can help you track down programs that cover specific drugs. Make sure you're meeting all eligibility rules.

No matter how often you factor in the cost of healthcare as you plan for retirement, the reality can be a tough pill to swallow. Reducing prescription drug costs requires annual vigilance, communication with your healthcare providers, and a little detective work.

The Motley Fool has a disclosure policy.