Medicare Generic Discounts: How to Save on Prescription Drugs in 2025

When you’re on Medicare Part D, the federal program that helps cover prescription drug costs for people enrolled in Medicare. It’s also known as Medicare prescription drug coverage, and it’s designed to make medications more affordable—especially generic drugs. In 2025, a new $2,000 out-of-pocket cap means that once you hit that limit, your plan pays 100% for covered generics for the rest of the year. That’s not a discount—it’s a full stop to paying for meds. But to get there, you need to understand how the system works.

Formulary tiers, the system pharmacies and insurers use to group drugs by cost. Also known as drug tiers, they determine how much you pay at the pharmacy counter. Generics usually sit on Tier 1 or Tier 2, meaning they’re the cheapest options. Brand-name drugs? They’re on higher tiers with bigger co-pays. If your doctor prescribes a brand, ask if a generic version exists—it’s often the same drug, just cheaper. And if your plan doesn’t cover it? You can request a formulary exception. Most plans approve them if the generic is clinically equivalent.

Prescription drug costs, the total amount you pay for meds, including premiums, deductibles, and co-pays. Also known as out-of-pocket expenses, these add up fast if you’re on multiple medications. But with Medicare’s new cap, the math changes. If you’re taking three or four generics a month, you might hit that $2,000 limit by late summer. After that, your pills cost you nothing. That’s why checking your plan’s formulary every year matters. Plans change. Tiers shift. And what was cheap last year might not be this year.

Don’t assume your current plan is the best. Some plans offer $0 copays on certain generics during the coverage gap—yes, even before you hit the cap. Others have preferred pharmacies where you pay less. And if you’re on a low income, you might qualify for Extra Help, a federal program that lowers your monthly premiums and out-of-pocket costs even further.

What you’ll find below are real, practical guides on how Medicare Part D works in 2025, what to do when your generic isn’t covered, how to compare plans, and which medications are most likely to be discounted. You’ll see how people are saving hundreds—even thousands—by simply knowing how the system works. No jargon. No fluff. Just what you need to make your meds affordable.