Medicare Part D Spending Cap Will Save Seniors $7bn in 2025, HHS Data Suggests

An ASPE report on Part D savings released before the Trump Administration took office indicated the new $2,000 spending cap could save some beneficiaries thousands of dollars per year.

Beneficiaries who receive the low-income subsidy could save more than $1,000 under the Part D spending cap, ASPE said. (Shutterstock)
Key Takeaways
  • An ASPE report released before President Trump took office found that beneficiaries could save $7bn on prescription drugs thanks to the new Medicare Part D spending cap.
  • Each enrollee is expected to save about $600 annually, but those who do not receive the low-income subsidy would save more.
  • Patients with CF, multiple myeloma or other major health conditions and not LIS eligible also could see substantial savings on drug costs in 2025.

The Inflation Reduction Act (IRA)’s $2,000 Part D spending cap, which took effect on 1 January, is projected to help more than 11 million Medicare beneficiaries save $7bn on prescription...

The out-of-pocket (OOP) threshold for Part D catastrophic coverage was capped at $2,000 beginning 1 January, down from $8,000, inclusive of manufacturer discounts on brand-name drugs. As a prelude to...

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