HHS: Medicare Part D Spending Cap Will Save Seniors $7B in 2025
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Feb 06, 2025
The Inflation Reduction Act (IRA)’s $2,000 Part D spending cap, which took effect Jan. 1, is projected to help more than 11 million Medicare beneficiaries save $7 billion on prescription drugs, according to a new report from HHS’s Office of the Assistant Secretary for Planning and Evaluation (ASPE).
Under the IRA, the out-of-pocket (OOP) threshold for Part D catastrophic coverage is now capped at $2,000 — down from $8,000, inclusive of manufacturer discounts on brand-name drugs — and will be adjusted annually for inflation. The IRA also included the elimination of cost sharing in the catastrophic coverage phase, which began in 2024.
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