Medicare Drug Costs –
A Break at Last for Seniors
The Takeaway
- New rules cap annual out-of-pocket Part D drug costs at $2,000.
- Beginning in 2025, you won’t keep paying indefinitely if your meds are expensive.
- The new Medicare Prescription Payment Plan lets you spread costs over the year.
- Ask your plan or pharmacy how to enroll in monthly billing.
The big change
Thanks to the Inflation Reduction Act of 2022, Medicare will cap out-of-pocket Part D prescription drug costs at $2,000 starting in 2025. Once your total spending hits $2,000, your plan covers the rest. Details: Centers for Medicare & Medicaid Services (CMS)
Smoothing out the sticker shock
The Medicare Prescription Payment Plan (MPPP) allows seniors to spread their drug costs evenly over 12 months. Instead of paying large lump sums, you can make smaller, predictable monthly payments.
Why it matters
Predictable payments help seniors on fixed incomes. Those with high-cost specialty drugs will benefit most. KFF analysis.
Disclaimer: This article is for informational purposes only and is not a substitute for professional advice.
