Medicare Part D Enrollees to Benefit from $2,000 Annual Prescription Drug Cost Cap Under Inflation Reduction Act

Dec 31, 2024, 04:30 PM

Starting January 1, 2025, Medicare Part D enrollees will benefit from a new annual cap on out-of-pocket prescription drug costs set at $2,000, as mandated by the Inflation Reduction Act. This cap, which was temporarily set at $3,500 for 2024, aims to provide financial relief to seniors and others on Medicare, particularly those with high medication costs. The Act, passed by Democrats and opposed by all Republicans, also includes other measures such as a $35 monthly cap on insulin prescriptions and provisions allowing Medicare to negotiate drug prices. The change is expected to save millions of Americans money on their medications, with over 3 million Medicare beneficiaries projected to benefit from the $2,000 cap in 2025, rising to over 4 million by 2029.