Prescription drug prices

Starting in 2025, over 1 million Medicare beneficiaries in the U.S. will save more than $1,000 annually due to a new $2,000 cap on out-of-pocket prescription drug costs, a provision of President Biden's Inflation Reduction Act. This cap, which affects Medicare Part D, is expected to lower prices for approximately 3.2 million seniors who do not receive other subsidies. The AARP reported that this change will provide long-term savings, particularly for those using high-cost medications. Despite potential increases in Part D premiums, the benefits will extend to 4.1 million beneficiaries by 2029. Meanwhile, advocates highlight the challenges faced by those currently unable to afford medications, as the new pricing structure will not take effect until 2025, leaving some patients in distress. The legislation also empowers Medicare to negotiate drug prices, with the first negotiated prices set to be implemented in 2026.