Millions Set to Benefit from 2025 Prescription Drug Cost Cuts
Starting January 2025, a $2,000 out-of-pocket cap for Medicare Part D will help over a million beneficiaries save at least $1,000 annually, according to a new AARP report stemming from the 2022 Inflation Reduction Act.
Published on April 8, 2025
A new AARP report, along with corroborating research from Reuters and others, indicates that starting January 2025, Medicare Part D enrollees will benefit from a $2,000 out-of-pocket cap. Originating from the 2022 Inflation Reduction Act, the cap is expected to save over a million beneficiaries at least $1,000 annually. The report published on January 16, 2025, outlines how this measure will reduce the financial burden on seniors who depend on prescription medications.
Additional coverage by Forbes, Axios, and GoodRx explains that this change will also phase out the so-called ‘donut hole’—an outdated cost-sharing structure—helping to make drug costs more manageable. With the cap officially in place, beneficiaries may see significant financial relief, even as premium adjustments are implemented for improved coverage overall.