Medicare’s new $2,000 drug cap promises hefty savings

Seniors with high medication costs stand to significantly reduce their annual out-of-pocket spending when the cap starts in 2025.

Going into the new year, seniors who take prescription drugs and receive Medicare benefits are likely to shell out less for those treatments. That’s due to a provision in the 2022 Inflation Reduction Act, set to begin in 2025, which will cap out-of-pocket costs on prescriptions at $2,000 annually.