As part of the 2022 Inflation Reduction Act, the federal climate and health care bill, a new cap will reduce out-of-pocket spending on prescription drugs for potentially millions of older Americans in Medicare Part D.
According to USA Today, Medicare recipients will get a break in 2025 with a $2,000 cap on prescription drug costs, a cap approved by Congress but the incoming administration of President elect Donald Trump may influence just how it is administered.
Drugs such as Revlimid, Pomalyst, Imbruvica, Jakafi, and Ibrance, all cancer drugs, cost Medicare enrollees $11,000 to close to $15,000 per drug back in 2023, and often times people found themselves paying a different amount for the same drug each month, according to a KFF analysis.
“The structure of the benefit was somewhat confusing and also left people potentially on the hook for thousands of dollars in out-of-pocket costs,” Juliette Cubanski, deputy director of the program on Medicare policy at KFF said.
In comparison, in 2024 consumers’ out-of-pocket costs were capped at about $3,300 per year and as of January 1st that cap dropped to $2,000 per year. AARP estimates that more than 3 million Medicare enrollees will be saving money on prescription drugs in 2025 due to the cap.
States such as California, Florida, Texas, New York, and Pennsylvania boast the most people who aim to benefit from the cap.