The federal government will cap drug copays and premiums for Medicare beneficiaries and expand eligibility for financial assistance for medications in 2024.
The new policies are part of the Inflation Reduction Act, passed in 2022, and being rolled out over several years. In 2023, the legislation led to caps on insulin prices for Medicare beneficiaries and financial penalties for drugmakers raising the cost of their medications higher than the rate of inflation.
AARP laid out when the act's provisions take effect, year-by-year. Here are three big changes coming to Medicare in 2024:
- Beginning in 2024, Medicare Part D beneficiaries whose drug costs reach the catastrophic phase will not owe any additional co-pays for the year. In 2024, this limit is set at $8,000.
- From 2024 through 2029, Medicare Part D plans cannot raise base premiums more than 6% per year.
- CMS will also expand access to financial assistance for drug copays. Beginning in 2024, Medicare members can opt to pay their copays in monthly installments to avoid large one-time charges.
See the changes taking effect in 2025 through 2029 here.