Over 60,000 Alabama residents will be saving money on prescriptions in 2025 – as a “price cap” takes effect. Next year, a new cap on prescription drugs is expected to benefit 61,359 Alabamians, who have Medicare drug plans; that, according to a new report by the AARP.
By 2029, the report estimates that more than 76,000 Alabamians will see savings on prescriptions.
Beginning January 1st (2025), the prescription drug provision will place an annual limit of $2,000 on the amount of money, people enrolled in the Medicare Part D and Advantage plans with prescription coverage pay for out-of-pocket prescription costs. The price cap was included in the 2022 Inflation Reduction Act passed by Congress.
AARP of Alabama, serves more than 400,000 members, age 50 and older, in the state. AARP’s report found that Medicare drug plan enrollees, are set to see average savings of some $1,500 for prescription drugs in 2025.
Some “Part D” enrollees have faced out-of-pocket prescription costs that exceeded $10,000 each year – according to the report. A 2023 study – by the American Medical Association, has found that many older Americans have had to skip doses of medication or NOT fill prescriptions because of high drug prices.
We’ll keep you updated as this story progresses.