Medicare plans have a long road ahead of them in preparing to administer Medicare Prescription Payment Plan (MPPP). One of the biggest obstacles is ensuring that these payment plans are compliant with US Treasury and Banking regulations, as well as Healthcare regulations. 

President Biden’s Inflation Reduction Act included the Medicare Prescription Payment Plan (MPPP or M3P). MPPP allows beneficiaries to spread their out-of-pocket costs across their plan year, significantly increasing their access to their prescriptions. But what does this mean for the Medicare Prescription Drug Plans (PDPs), Medicare Advantage (MA) Plans, and Employer Group Waiver Plans (EGWPs) that will have to administer these new payment plans?

The Inflation Reduction act, passed by Congress in August 2022, introduced the Medicare Prescription Payment Plan (MPPP)—a program that allows Medicare Prescription beneficiaries to spread their out-of-pocket costs over the course of their plan year. This is great news for participants who will undoubtedly have greater access to their prescriptions, but it means a lot of work for the Medicare Prescription Drug Plans (PDPs), Medicare Advantage (MA) plans, and Employer Group Waiver Plans (EGWPs) that will now have to offer these payment plans. Enrollment will start October 15, 2024, so plans need to act now.