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Does Medicare Part A & B Cover Prescriptions?

Reviewed by Russell Noga, Licensed Medicare Insurance Broker (all 50 states) — Last updated October 8, 2026

Medicare Part A and Part B cover only limited prescription drugs, such as drugs you get as a hospital inpatient (Part A) and certain drugs given in a doctor’s office or outpatient setting (Part B). For most prescriptions you fill at a pharmacy, you need Part D or a Medicare Advantage plan with drug coverage.

Part B covers some drugs you do not usually give yourself, such as many infusions and injections at a clinic, some oral cancer drugs, certain vaccines and insulin used with an insulin pump. Everyday prescriptions, like blood pressure, cholesterol or diabetes pills, generally require Part D.

See Medicare Part D plans 2027.

✔ Licensed in all 50 states
✔ Based on CMS 2027 data
✔ Free plan comparison

Key Highlights

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Part A covers drugs given during an inpatient hospital stay.

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Part B covers certain drugs given by a provider, and some others.

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Most pharmacy prescriptions require Part D.

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For 2027, Part D has a $700 maximum deductible and $2,400 cap.

Compare plans and enroll online

What Parts A and B Cover for Drugs

Part Drugs Covered
Part A Drugs you get as a hospital inpatient, and some in skilled nursing or hospice
Part B Drugs given in a doctor’s office or outpatient clinic, such as many infusions and injections; some oral cancer drugs; certain vaccines; insulin used with an insulin pump
Part D Most outpatient prescriptions filled at a pharmacy

Getting Drug Coverage

Standalone Part D Plan

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Works with Original Medicare, alone or with Medigap

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Average about $36 a month for 2027

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Choose any plan offered in your region

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Medical care stays with Original Medicare

Medicare Advantage With Drugs

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Drug coverage built into your health plan

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Drug portion averages about $7 a month for 2027

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One card and one plan for medical and drugs

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You generally use the plan’s network for medical care

Choosing the right dental plan

Find & Compare Plans Online

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2027 Part D Costs

$700

Maximum 2027 Part D deductible, up from $615.

$2,400

2027 Part D out-of-pocket cap, up from $2,100.

About $36

Average 2027 standalone Part D premium, up less than $1 (CMS).

$7

Projected average drug portion of a Medicare Advantage premium for 2027, down from $11.32.

Covered insulin costs no more than $35 a month under Part D, and CDC-recommended adult vaccines covered by Part D cost $0.

Late Penalty and Help Paying

Late enrollment penalty: if you go 63 days or more in a row without Part D or other creditable drug coverage after your Initial Enrollment Period, Medicare adds 1% of the national base beneficiary premium for each full month you went without. The 2027 base beneficiary premium is $41.33, so every uncovered month adds about $0.41 a month, for as long as you have Part D.

Extra Help: people with limited income and resources may qualify for Extra Help, which lowers Part D premiums, deductibles and copays. People enrolled in a Medicare Savings Program automatically qualify. See Extra Help and prescription assistance programs.

If big drug costs hit early in the year, the Medicare Prescription Payment Plan lets you spread your out-of-pocket drug costs into monthly payments across the year instead of paying at the pharmacy counter. It is available with every Part D plan and Medicare Advantage plan with drug coverage, and it does not change the total you owe.

Preferred Pharmacies and Mail Order

Where you fill prescriptions can change your yearly cost as much as which plan you choose. Most plans divide their network into preferred and standard pharmacies. Preferred pharmacies have lower negotiated prices and often lower copays; standard pharmacies are still in network but usually cost more. Out-of-network pharmacies are generally not covered except in limited situations.

Retail Pharmacy

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Pick up the same day

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Pharmacist on hand for questions

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Preferred retail pharmacies keep copays low

Mail Order

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90-day supplies of maintenance drugs

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Often the lowest copay for long-term medicines

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Delivered to your home

If you take maintenance drugs for blood pressure, cholesterol, diabetes or thyroid, compare a 90-day mail-order fill in the plan finder. For many people it is the single easiest way to cut costs.

Understanding Elevance plans

If a Drug Is Not Covered

Sometimes a drug you take is not on a plan’s 2027 formulary, or it carries a rule like prior authorization. You still have options:

If Your Drug Is Not Covered

1

Ask for a transition fill. In the first 90 days of a new plan year or a new plan, plans generally must give you a temporary supply of a drug you were already taking, so you have time to switch or request an exception.

2

Ask your doctor about alternatives. A covered drug in the same class may work as well and cost less.

3

Request a formulary or tiering exception. Your doctor submits a statement explaining why you need the drug or a lower copay. Plans must decide within set time limits.

4

Appeal a denial. If the plan says no, you can appeal, and there are several levels of review.

See steps to appeal a Medicare Part D denial.

Enrollment Periods

Enrollment Period Dates What You Can Do
Annual Enrollment Period October 15 to December 7, 2026 Join, switch or drop a Medicare Advantage or Part D plan for January 1, 2027
Medicare Advantage Open Enrollment January 1 to March 31, 2027 If you are in Medicare Advantage, switch to another plan or return to Original Medicare once
Initial Enrollment Period 7 months around your 65th birthday month Sign up for Medicare and choose your first plan
Special Enrollment Periods Varies Change plans after events like moving, losing other coverage or your plan leaving your area

Most people make changes during Annual Enrollment. If you are happy with your current plan, you do not have to do anything; it renews automatically. Still, read your Annual Notice of Change, because premiums, copays, networks and drug lists can all change on January 1.

Help Paying for Drugs

If your income and savings are limited, two programs can cut your Medicare costs sharply:

Medicare Savings Programs

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Run by your state Medicaid office

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Can pay your Part B premium, and sometimes deductibles and coinsurance

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Income and asset limits vary by state

Extra Help (Part D)

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Run by Social Security

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Lowers Part D premiums, deductibles and copays

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People in a Medicare Savings Program qualify automatically

If you qualify for both Medicare and full Medicaid, you may also be able to join a Dual Special Needs Plan. See help for low-income Part D beneficiaries.

Reading Your Annual Notice of Change

Check Every Line

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Your 2027 premium and deductible

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Copays for doctors, specialists and hospital stays

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The out-of-pocket maximum

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Changes to your drug list, tiers and coverage rules

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Whether your doctors, hospitals and pharmacy are still in network

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Changes to dental, vision, hearing and other extras

Plans must send the Annual Notice of Change by September 30. It is the single most useful document you get each fall, because it tells you exactly how your plan changes on January 1.

Special Enrollment Periods

Outside the fall and early-year windows, you generally need a Special Enrollment Period to change plans. Common reasons include:

You May Qualify If

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Your plan is leaving your area or ending

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You move outside your plan’s service area

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You lose employer or union coverage

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You qualify for Extra Help or a Medicare Savings Program, or your Medicaid status changes

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You want to join a 5-star plan, once a year

Each Special Enrollment Period has its own time limit, so act as soon as the event happens.

Common Part D Mistakes

Avoid These

1

Choosing by premium alone. Total yearly cost is what matters.

2

Leaving drugs off your list. One missing drug can change the winner.

3

Ignoring pharmacy status. Standard pharmacies can cost much more.

4

Auto-renewing without checking. Formularies and tiers change every January.

5

Delaying without creditable coverage. The penalty lasts as long as you have Part D.

How 2027 Part D Premiums Are Set

Each Part D plan submits a bid to CMS. CMS uses the bids to set the national average monthly bid amount, $296.05 for 2027, and the base beneficiary premium, $41.33 for 2027. The base premium is used to calculate the late penalty and subsidies; your actual premium depends on your plan and region. Federal law limits base premium growth to 6% a year through 2029.

Standard vs Enhanced Part D Plans

A basic plan covers at least Medicare’s standard benefit. An enhanced plan adds coverage, such as a lower deductible or lower copays, usually for a higher premium. For 2027, CMS says 88% of non-low-income beneficiaries can get a basic plan for $10.30 a month or less, and 93% can get an enhanced plan for less than $6.

Turning 65 in 2027

If you turn 65 in 2027, your Initial Enrollment Period lasts seven months: the three months before your birthday month, your birthday month and the three months after. Signing up during the first three months means your coverage starts on the first day of your birthday month.

Turning 65 Checklist

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Sign up for Part A and Part B, unless you have qualifying employer coverage and choose to delay Part B

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Decide between Medicare Advantage and Original Medicare with Medigap

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Join a drug plan, or a Medicare Advantage plan with drugs, to avoid a Part D late penalty

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If you choose Medigap, buy during your six-month Medigap Open Enrollment Period

Medicare Advantage or Medigap?

Medicare Advantage Original Medicare + Medigap
Monthly premium Often low or $0 (2027 average $12, CMS) Higher; varies by plan letter, age and ZIP
Doctors Usually a network Any provider in the U.S. that accepts Medicare
Costs when you get care Copays and coinsurance up to a yearly maximum Low and predictable; little or nothing on Plan G after the Part B deductible
Drug coverage Usually included Add a separate Part D plan
Dental, vision, hearing Many plans may include some coverage Not included
Changing later Every year during Annual Enrollment Health questions in most states after your Medigap Open Enrollment Period

Appeals and Complaints

If your plan denies a service, a drug or payment for care, you have the right to appeal. The plan’s denial notice explains how. There are several levels of appeal, starting with the plan and moving to independent reviewers.

For problems that are not about coverage, such as customer service or wait times, you can file a grievance with the plan. You can also contact 1-800-MEDICARE or your State Health Insurance Assistance Program for help.

The 2027 Part B Premium

The Part B premium is the one big number not released with the plans. CMS normally announces it in November. The 2026 Medicare Trustees Report projects a 2027 standard premium of about $209.50 a month and a deductible of about $292, up from $202.90 and $283 in 2026. You keep paying it with Medicare Advantage.

If You Miss December 7

If you miss the Annual Enrollment deadline, your current plan renews automatically for 2027, with the changes in your Annual Notice of Change. If you are in Medicare Advantage, you get one more chance from January 1 to March 31, 2027, to switch Medicare Advantage plans or return to Original Medicare and join a Part D plan.

Medigap and Part D Together

Because Medigap plans sold today do not cover prescriptions, you should also have a Part D plan. It does not have to come from your Medigap company. Choose it by your drugs and pharmacy in Medicare Plan Finder, and review it every fall. If you delay drug coverage without other creditable coverage, the late penalty adds 1% of the national base beneficiary premium, $41.33 for 2027, for every month you went without.

Getting Help

You do not have to compare plans alone, and you should not have to pay for help. These are the free options:

Free Help Comparing Plans

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Medicare Plan Finder on Medicare.gov, available any time

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1-800-MEDICARE (1-800-633-4227), available 24 hours a day, seven days a week

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Your State Health Insurance Assistance Program (SHIP), which offers free, unbiased counseling

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A licensed insurance agent or broker, who can compare plans from several insurers at no cost to you

Before any call, have your Medicare card, your list of drugs and doses, your doctors and your preferred pharmacies ready. It turns a long conversation into a short one.

Bottom Line

The Bottom Line

Parts A and B cover only limited drugs. For most prescriptions, get Part D or a Medicare Advantage plan with drug coverage when you are first eligible to avoid a lifelong penalty.

Compare plans and enroll online

Frequently Asked Questions

➤ Does Medicare Part A cover prescriptions?

Only in limited cases. Part A covers drugs given during inpatient hospital stays and some drugs in skilled nursing or hospice care. It does not cover prescriptions you fill at a pharmacy, which need Part D or a Medicare Advantage plan with drug coverage.

➤ Does Part B cover prescriptions?

Part B covers certain drugs given by providers, such as some injections and infusions in a doctor’s office, and a few others. It does not cover most pharmacy prescriptions, so you need Part D or a Medicare Advantage plan with drug coverage.

➤ What covers pharmacy prescriptions?

Part D or a Medicare Advantage plan with drug coverage. You can buy a standalone Part D plan to pair with Original Medicare or Medigap, or choose a Medicare Advantage plan that includes Part D.

➤ What is the 2027 Part D cap?

The Part D out-of-pocket cap is $2,400 for 2027, up from $2,100 in 2026. Once your out-of-pocket spending on covered drugs reaches that amount, you pay nothing more for covered Part D drugs for the rest of the year, whether you have a standalone plan or Medicare Advantage.

➤ Do Medicare Advantage plans cover prescriptions?

Most do. Many Medicare Advantage plans include Part D drug coverage, and the average drug portion of the premium is $7 a month for 2027, according to CMS. Check that your drugs are on the plan’s 2027 formulary before enrolling, since each plan has its own drug list.

➤ What is the Part D deductible for 2027?

The maximum Part D deductible is $700 in 2027, up from $615 in 2026. Some plans have a lower deductible or do not apply it to every drug tier, so compare plans based on the drugs you actually take.

➤ Is there a penalty if I delay Part D?

Yes. If you go without Part D or other creditable drug coverage for a period after you first become eligible, you may owe a late enrollment penalty added to your premium for as long as you have Part D. If you have other drug coverage, ask whether it is creditable.

Have Questions?

Speak with a licensed insurance agent

1-855-398-0716

TTY users 711

Mon-Fri: 8am-9pm ET

Find & Compare Plans Online

Speak with a licensed insurance agent

1-855-398-0716TTY 711

Mon-Fri: 8am-9pm ET

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