Report shows total out-of-pocket savings will average nearly $2,500
WASHINGTON, Jan. 16, 2025 /PRNewswire/ — A new report out from AARP today provides additional insight into the impact of a historic new financial protection for our nation’s nearly 55 million Medicare drug plan enrollees. For the first time ever, beginning January 1, 2025, Medicare drug plans will limit enrollees’ annual out-of-pocket spending to $2,000, thanks to a provision in the 2022 Inflation Reduction Act that AARP championed. Specifically, the report shows that 94% of all Part D enrollees expected to reach the new cap in 2025 will have lower total (i.e., premiums and cost sharing) out-of-pocket costs, saving an average of $2,474 nationally. The report also provides state-level data and estimates that 95% of Part D enrollees who will reach the out-of-pocket cap will have lower out-of-pocket health costs in 33 states plus the District of Columbia.
“This report shows that most Part D enrollees who hit the new out-of-pocket spending cap this year will see substantial savings even after taking 2025 plan premiums into account, freeing up funds to invest in their families, spend on their broader health needs or simply save to achieve greater financial stability,” said Nancy LeaMond, AARP’s Chief Advocacy and Engagement Officer. “AARP was instrumental in Congress passing the prescription drug law of 2022 to lower prices and out-of-pocket costs for Medicare enrollees and we couldn’t be prouder that the day has finally arrived for this provision to go into effect and that the law is working as intended.”
“Once fully implemented, the 2022 drug law is expected to reduce Part D enrollee and program spending by billions of dollars,” said Leigh Purvis, AARP’s Prescription Drug Policy Principal, and author of the report. “This report confirms that enrollees are already seeing overall savings as rollout of the law continues.”
Other takeaways from the report include:
The full report can be found here.
To learn more about AARP’s work to lower prescription drug prices, visit How High Rx Prices Hurt.
About AARP
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.
View original content to download multimedia:https://www.prnewswire.com/news-releases/new-aarp-report-medicare-part-d-enrollees-who-reach-the-new-2-000-out-of-pocket-spending-cap-will-save-thousands-despite-premium-changes-302352884.html
SOURCE AARP
