The new $2,000 cap on out-of-pocket costs for prescription drugs is now in effect as of January 1. As part of the Inflation Reduction Act, people with Medicare Part D will pay no more than $2,000 for all their covered prescription drugs for all of 2025.
The out-of-pocket drug cap is a major benefit, but it is not the only provision lowering drug costs for people with Medicare. The Inflation Reductions Act caps the cost of insulin at $35 per month for covered insulin products and makes recommended vaccines (like flu, shingles, COVID and RSV) free to everyone with Medicare Part D. The law also allows Medicare, for the first time ever, to negotiate directly with drug companies each year to lower the prices of many of the most expensive and most commonly used prescriptions drugs.
January 2, 2024 – M. Shepard