Does buying medication from Canada count toward my Medicare deductible?
Educational information, not medical, legal or insurance advice.
The short answer
No. Medicare drug plans don't cover prescription drugs you buy outside the U.S. That means drugs bought from Canada do not count toward your Part D deductible, and they do not count toward the yearly out-of-pocket limit.
How Medicare drug costs work in 2026
Medicare drug coverage (Part D) has three steps. The first is the deductible. If your plan has one, you pay all of your drug costs until you reach it. No Medicare drug plan may have a deductible higher than $615 in 2026. Some plans have no deductible at all.
After the deductible, you pay 25% of the cost of your covered drugs, whether they are generic or brand-name.
Once your out-of-pocket spending on covered Part D drugs reaches $2,100 in 2026, you move to catastrophic coverage. After that, you pay nothing out of pocket for covered Part D drugs for the rest of the calendar year.
What counts, and what does not
The $2,100 limit is based on your out-of-pocket spending on covered Part D drugs. It also includes certain payments made on your behalf, such as through the Extra Help program.
Medicare drug plans don't cover prescription drugs you buy outside the U.S. A Medicare guide to out-of-pocket costs lists "drugs purchased outside the U.S. and its territories" among the payments that do not count. That guide says the monthly plan premium does not count either.
Who may still want to compare
Prices vary by drug and by pharmacy, and we cannot promise savings. Still, comparing may make sense for some people:
- People with no drug coverage. If you pay cash, there is no plan deductible or limit to earn credit toward.
- People who rarely reach their deductible. If you would not reach it anyway, losing credit toward it costs you little.
- People who take one or two brand-name drugs. You can compare the full-year price of those drugs both ways.
Who should think it through first
If you expect to reach the $2,100 limit anyway, think carefully. After you reach it, you pay nothing for covered Part D drugs for the rest of the year. Money spent on drugs from Canada would not have helped you get there.
A simple way to decide is to add up a full year both ways. Through your plan, count your deductible, your 25% coinsurance up to the limit, and your plan premiums. Outside your plan, count the full price you pay, with no credit toward the deductible or the limit.
The Medicare Prescription Payment Plan can spread your costs across the year. Medicare says it does not save you money or lower your drug costs.
Free help with plan questions
A State Health Insurance Assistance Program (SHIP) gives free counseling to people with Medicare. Medicare says SHIP can help you choose a plan, review coverage and understand costs. Visit shiphelp.org to find yours. It is not affiliated with RxPriceLink. For questions about RxPriceLink, call us toll-free at 1-844-999-4295 or use the form on this page.
What RxPriceLink does
RxPriceLink is a referral service, not a pharmacy. We point you toward licensed partner pharmacies and show you the lowest price we find. A valid prescription is always required, and you decide what is right for you.
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Keep reading
Local information for each state: Arizona · Florida · New York · Pennsylvania · Texas.
Sources
- Medicare.gov: Costs for Medicare drug coverage (2026 deductible limit, 25% coinsurance)
- Medicare.gov: Costs in the coverage gap (the $2,100 limit in 2026)
- Medicare.gov: Travel outside the U.S. (drug plans do not cover drugs bought outside the U.S.)
- CMS: Final CY 2026 Part D Redesign Program Instructions fact sheet ($615 deductible, $2,100 threshold)
- CMS: Understanding True Out-of-Pocket (TrOOP) Costs, product 11223-P, revised October 2015
- Medicare.gov: How much does Medicare drug coverage cost? (Medicare Prescription Payment Plan)
- Medicare.gov: Talk to someone (SHIP counseling)