(source: Medicare.gov)A network pharmacy that offers covered drugs to plan members at lower out-of-pocket costs than what the member would pay at a non-preferred [or standard] network pharmacy.
As noted in more detail within our Frequently Asked Question, "What is the difference between a Medicare Part D standard and preferred network pharmacy?", almost all stand-alone Medicare prescription drug plans (PDPs) use preferred and standard network pharmacy pricing as compared to having all pharmacies using a single pricing and cost-sharing structure.
For example, in 2024, 93% of all Medicare PDPs use the standard and preferred network pharmacy structure). In addition, the "preferred" or "standard" network pharmacy designation can apply to both retail and mail-order pharmacies. So there can be four (4) different cost-sharing structures depending on your particular prescription (30-day, 60-day, 90-day:
- "Preferred" retail pharmacies,
- "Standard" (non-preferred) retail pharmacies,
- "Preferred" mail-order pharmacies, and
- "Standard" (non-preferred) mail-order pharmacies.
Example showing a comparison of preferred and standard network pharmacy cost-sharing.
As an example of different cost-sharing between network pharmacies, the chart below shows the variation between preferred and standard network pharmacies for the 2025 California AARP Medicare Rx Preferred from UHC (PDP) plan
(please note that cost-sharing can change year-to-year).
| California AARP Medicare Rx Preferred (S5921-413) | ||||||
| 30-Day Supply Cost-Sharing | 90-Day Supply Cost-Sharing | |||||
| Preferred Pharmacy | Standard Pharmacy |
Preferred Mail-Order |
Preferred Pharmacy | Standard Pharmacy |
Preferred Mail-Order |
|
| Initial Coverage Phase Cost-Sharing | ||||||
| Tier 1 - Preferred Generic: | $5.00 | $13.00 | n/a | $15.00 | $39.00 | $0.00 |
| Tier 2 - Generic: | $10.00 | $18.00 | n/a | $30.00 | $54.00 | $0.00 |
| Tier 3 - Preferred Brand: | $47.00 | $47.00 | n/a | $141.00 | $141.00 | $126.00 |
| Tier 4 - Non-Preferred Brand: | 40% | 45% | 40% | n/a | n/a | n/a |
| Tier 5 - Specialty Tier: | 33% | 33% | 33% | n/a | n/a | n/a |
Remember: Preferred and standard network pharmacy cost-sharing shown above can also vary by state or CMS Region.
Question: How do I know whether a Medicare Part D drug plan uses preferred pharmacy pricing?
Both our PDP-Finder and MA-Finder show the note: "Higher cost-sharing at standard network pharmacies" if a drug plan uses preferred network pharmacy pricing – and again, this means the cost-sharing you pay is different depending on whether you purchase your medications from a preferred network pharmacy or a standard network pharmacy. You can also see an "Rx$" icon after this note and a "Details" link showing you more information about preferred vs. standard cost-sharing for the chosen Medicare Part D plan.
Our this site Formulary Browser (Formulary-Browser.com) and Drug Finder tools also include the
icon with a link to the plan's cost-sharing details, where you can see the following:- 30-Day preferred retail pharmacy cost-sharing,
- 30-Day standard (non-preferred) retail pharmacy cost-sharing,
- 30-Day preferred mail-order pharmacy cost-sharing,
- 90-Day preferred retail pharmacy cost-sharing,
- 90-Day standard (non-preferred) retail pharmacy cost-sharing,
- 90-Day preferred mail-order pharmacy cost-sharing,
In addition, your Medicare Part D plan documentation (Summary of Benefits and Evidence of Coverage) will tell you whether your Medicare Part D drug plan has preferred cost-sharing at certain pharmacies. Look for text in your Evidence of Coverage document such as:
"The Pharmacy Directory will also tell you which of the pharmacies in our network have preferred cost-sharing, which may be lower than the standard cost-sharing offered by other network pharmacies."
Question: How do I find one of my Medicare drug plan's preferred pharmacies?
(1) Refer to your Medicare drug plan's pharmacy directory.
You might have also received a printed Pharmacy Directory that will tell you more about preferred / standard pharmacies in your area. If you did not receive a printed pharmacy directory, call your Medicare drug plan's Member Services department using the toll-free number found on your member ID card and ask to be sent a pharmacy directory. If you do not want a printed copy of the pharmacy directory, you can download an electronic version of the pharmacy document from your plan's website.
(2) Use your plan's online Pharmacy locator.
Medicare Part D plans also usually have an easily accessible online pharmacy search tool that allows you to search for network pharmacies in your area and indicates which pharmacies have preferred or standard network cost-sharing.
(3) Call your plan and ask for assistance.
If you cannot find your plan's online pharmacy search, you can call your Medicare plan's Member Services toll-free number (found on enrollment information, printed plan information, and your Member ID card) and ask a Member Services representative to help you find a preferred pharmacy in your area (especially if you are traveling to another area).
For more information, see our Frequently Asked Questions: