Medicare's $2,000 Drug Cap: 94% of Enrollees to Save Big in 2025

A new report from AARP highlights the significant financial relief that Medicare’s $2,000 cap on out-of-pocket drug costs will bring to enrollees. Starting this year, the cap is expected to benefit over 1 million Medicare Part D enrollees by 2025, with 94% of them seeing lower out-of-pocket costs. On average, these enrollees will save $2,474, a 48% reduction in their total out-of-pocket expenses. Notably, 62% of these enrollees will save over $1,000, and 12% will save more than $5,000. However, 6% might face an average increase of $268 in spending. The cap, part of the 2022 Inflation Reduction Act, aims to reduce the high costs of prescription drugs, which are often two to three times higher in the U.S. than in other developed countries. By 2029, the number of beneficiaries expected to benefit from this cap is projected to rise to 4.1 million.

Source: www.cnbc.com