Starting Jan. 1, Medicare will begin capping prescription drug costs at $2,000 annually, a move expected to save millions of Americans money on medications.
The change is thanks to provisions of the Inflation Reduction Act, which are meant to cut costs for consumers, expand benefits and keep prices more reliable.
Patients who reach the cap will not have to pay for prescriptions covered under Medicare Part D for the rest of the year.
The change will also cap the cost of insulin at $35 per month per covered prescription.
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The newly introduced ceiling will apply specifically to prescription drug costs. Other healthcare cost like monthly premiums and costs for some drugs, like those administered during doctor or hospital visits, will not count toward the new limit.
But for seniors and patients who need expensive drugs for treatments of conditions such as cancer, the savings could be significant.
AARP estimates 3.2 million people will be eligible for savings under the new plan in 2025.
Those on Medicare should also expect their premiums to go up by just over $10 per month starting in 2025. Anyone earning more than $106,000 can expect to see their premiums rise even more, but by how much depends on how much they make.
