Caps on Medicare prescription drug costs will save Part D enrollees a collective $7.4 billion in 2025, according to a report from HHS' Office of the Assistant Secretary for Planning and Evaluation.
The report, published July 7, broke down expected savings from price caps by state. An estimated 18.7 million people, around 1 in 3 Medicare Part D enrollees, will save on drug costs in 2025. The average annual saving per person is estimated at $396.08.
The Inflation Reduction Act, signed in August 2022, includes several changes designed to cut Medicare Part D costs.
In 2024, Part D enrollees who have drug costs so high they enter the catastrophic phase of coverage will not owe any additional copays for the year. In 2025, annual prescription drug costs for Part D enrollees will be capped at $2,000.