Biden drug cost cap will save seniors about $1,100 a year, AARP study finds

Source: The Hill

08/28/24 4:42 PM ET


More than a million U.S. seniors will save $1,100 in prescription drug costs every year under a provision in the 2022 Inflation Reduction Act, according to a new report released Wednesday.

The report was conducted by AARP, which lobbied for the passage of the Inflation Reduction Act in 2022. Under the provision, out-of-pocket prescription drug costs for Part D of the Medicare program will be capped at $2,000 every year beginning in 2025.

Before the Inflation Reduction Act, many Medicare Part D enrollees had to pay 5 percent of their prescription drug costs regardless of how much they had already paid. Between 3 and 4 million Medicare Part D enrollees are expected to benefit from the out-of-pocket cap every year between 2025 and 2029.

About 40 percent of Medicare drug plan enrollees — or roughly 1.4 million people — are expected to reach the new out-of-pocket cap between 2025 and 2029. And those Medicare recipients will save an average of 56 percent in their prescription drug costs — or around $1,100 — as part of the provision, according to the analysis.

Read more: https://thehill.com/policy/healthcare/4852482-prescription-drug-cost-savings/