Medicare Implements $2,000 Annual Cap on Prescription Drug Costs Under Inflation Reduction Act

Dec 31, 2024, 09:50 PM

Starting January 1, Medicare will implement a new annual cap on out-of-pocket prescription drug costs at $2,000 for beneficiaries, a move anticipated to save millions of Americans money on their medications. This cap, part of the Inflation Reduction Act, will apply to drugs purchased at pharmacies or through mail order, offering significant relief to those who require multiple medications. The provision aims to limit the financial burden on Medicare enrollees, who previously faced no limit on out-of-pocket costs for medications covered by their Part D drug plans.