Changes to Medicare Mean Many Drugs Will Cost Less

Good news for those on Medicare who pay for expensive drugs… changes in the law are set to save you money this year! The Inflation Reduction Act, signed into law in 2022, included changes to Medicare Part D which are now starting to take place.

The first changes happened last year, and included a $35 monthly cap on the cost of insulin for people with diabetes, and free vaccines. This year, four important changes are happening:

1. In 2024 a new lower annual $3,300 out-of-pocket cap for medications takes effect. (People covered under Medicare Part D will no longer have to pay 5% of the cost of brand-name drugs once they reach $3,300.) This is extremely important for seniors who take high-price medications for cancer and other diseases.
   
2. Pharmaceutical companies will be penalized if they increase the price of medications faster than the rate of general inflation.
   
3. Eligibility is being expanded for low-income seniors who need financial assistance with Part D costs.
   
4. Finally, Medicare is mandated to now negotiate prices for high-cost medications for the first time! According to a New York Times article, the first negotiations will be over ten expensive drugs, including blood thinners Eliquis and Xarelto, and diabetes meds Jardiance and Januvia.

More changes are set to occur in 2025, when a Medicare beneficiary’s total out-of-pocket costs will be capped at $2,000, and a monthly payment plan will be available to spread payments of out-of-pocket costs throughout the year.

We hope this information has been useful to you. We are always available to help with any elder law issues!. We are just a phone call or e-mail away.

The information provided herein does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available here are for general informational purposes only.