In less than a week, millions of Americans who get their prescriptions through Medicare could start saving a lot of money. On Jan. 1, a stipulation from the Inflation Reduction Act goes into effect, putting a $2,000 cap on how much people will spend out-of-pocket for prescription drugs.
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According to AARP, this cap will have the biggest impact on senior citizens who take multiple medications and those who have high-cost prescriptions. AARP said until now there has been no out-of-pocket spending cap for prescriptions through Medicare, putting many at risk of “significant financial burdens.”
The new limit applies to anyone who is on the Medicare Part D plan and those on Medicare Advantage, which is offered through private insurers. It’s also important to note the cap only covers drugs under the Part D plan’s list of covered drugs, so if a medication is not on that list, it will not apply toward the out-of-pocket max.
Health policy site KFF said there are more than 50 million Americans who get their prescriptions through Medicare Part D or a Medicare Advantage plan.
