Biden drug cost cap will save seniors about $1,100 a year, AARP study finds

Hill August 28, 2024
Alejandra O’Connell-Domenech

More than a million U.S. seniors will save $1,100 in prescription drug costs every year under a provision in the 2022 Inflation Reduction Act, according to a new report released Wednesday.

The report was conducted by AARP, which lobbied for the passage of the Inflation Reduction Act in 2022.

Under the provision, out-of-pocket prescription drug costs for Part D of the Medicare program will be capped at $2,000 every year beginning in 2025.

Before the Inflation Reduction Act, many Medicare Part D enrollees had to pay 5 percent of their prescription drug costs regardless of how much they had already paid.

Between 3 and 4 million Medicare Part D enrollees are expected to benefit from the out-of-pocket...

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