Seattle — At a time when many costs are rising, millions of Americans could soon see big savings on a key expense.
“Previously, people who had a Medicare prescription drug plan had no limit on the amount they had to pay out of pocket each year,” said Lee Purvis, director of prescription drug policy for AARP Public Policy.
Starting in 2025, Medicare Part D enrollees (approximately 56 million Americans) will benefit from a $2,000 limit on their out-of-pocket prescription drug costs.
“We've heard of people spending over $10,000 just on prescription drugs,” Purvis said.
According to AARP, 3 million people will benefit in 2025. That number will grow to 4 million by 2029.
“A lot of Medicare recipients aren't very high-income earners. They're often on fixed incomes, the average income is about $36,000 a year, so we're talking a lot of money for people who are facing high prescription drug costs,” Purvis said.
According to AARP, when Medicare drug plan enrollees reach the limit, about 40% of enrollees stand to save more than $1,000.
Some people could save as much as $5,000. The provision is part of the Combating Inflation Act to be passed by Congress and signed by President Biden in 2022.
It also puts limits on out-of-pocket costs for insulin and allows Medicare to negotiate drug prices.
“This will translate into very significant savings for a lot of people,” Purvis said.
