Going into the new year, seniors who take prescription drugs and receive Medicare benefits are likely to shell out less for those treatments. That’s due to a provision in the 2022 Inflation Reduction Act, set to begin in 2025, which will cap out-of-pocket costs on prescriptions at $2,000 annually.

Part D is the section of Medicare that covers most pharmaceutical products. Notably, the out-of-pocket cap which was $8,000 per year will decrease to $2,000.

The caps are mandated by the Inflation Reduction Act. No Medicare patient will pay more than $2,000 out of pocket for prescription drugs.

A provision of the Inflation Reduction Act will cap out-of-pocket costs for prescription drugs at $2,000 per year for people with Medicare Part D.

With the start of 2025, Medicare beneficiaries will benefit from a new $2,000 cap on out-of-pocket prescription drug costs, a significant change aimed at easing

Medicare will begin capping prescription drug costs at $2,000 annually, a move expected to save millions of Americans money on medications. (Scripps News)

Medicare beneficiaries who take a lot of pricey medications will get a big break come 2025. That’s when the $2,000 annual cap on out-of-pocket costs for drugs bought at the pharmacy or through mail order takes effect.