Becker's Healthcare December 27, 2024
Two-and-a-half years after President Joe Biden signed the Inflation Reduction Act into law, Medicare Part D beneficiaries will soon see an annual cap on medication costs.
Effective Jan. 1, Medicare Part D will begin limiting out-of-pocket prescription drug costs to $2,000. This ceiling will be adjusted for inflation each year.
Seven key details to know:
1. The law, which passed in August 2022, is a $739 billion reconciliation package that focuses on incentivizing clean energy, lowering healthcare costs and addressing climate change.
2. Historically, Medicare Part D beneficiaries had to spend about $7,000 before catastrophic coverage kicked in, which covered 95% of remaining medication costs. In 2024, the remaining 5% co-pay was abolished.
3. Alongside...