Becker's Healthcare December 27, 2024
Paige Twenter

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...

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