Why January Pharmacy Visits Feel So Expensive (and Why It’s Temporary)

If your January pharmacy bill felt higher than expected, you’re not imagining it. Medicare prescription drug plans reset at the start of the year, which means deductibles restart and out-of-pocket costs increase early on.

By the end of last year, many people paid little or nothing for medications. When January arrives, those savings reset, and plans may apply deductibles to more drugs than before.

The good news? Medicare prescription coverage is stronger than ever. Thanks to changes from the Inflation Reduction Act, prescription drug costs are now capped. In 2026, Medicare Part D out-of-pocket costs are limited to $2,100 per year. Once you reach that amount, you pay nothing for covered medications the rest of the year.

January feels expensive because plans collect more costs up front. If that creates a hardship, the Medicare Prescription Payment Plan (M3P) can spread costs evenly throughout the year. You can ask your plan about M3P or contact us for help.

While January pharmacy visits can be frustrating, Medicare drug coverage is now more predictable, more affordable, and better protected than in the past.

Need help understanding your Medicare prescription costs? Woodside is here for you.