AARP publishes report on upcoming prescription drug cap

WASHINGTON, DC — AARP has released a new report estimating that millions of Medicare beneficiaries will benefit from an upcoming cap on out-of-pocket costs for prescription drugs.

In January, a new $2,000 per year out-of-pocket limit for prescription drugs will go into effect for Medicare Part D enrollees.

AARP estimates that more than 3 million Americans will benefit in the first year, including nearly 204,000 Floridians.

“On average, about 1.4 million of these insured people will save $1,000 or more per year, and more than 400,000 will save more than $3,000,” Leigh Purvis, director of drug policy at the AARP Public Policy Institute, said at a press conference Wednesday.

The change is part of the Inflation Reduction Act signed by President Joe Biden in 2022 and supported by AARP. The law also imposes a $35 monthly cap on insulin and allows Medicare to negotiate prices with certain drug manufacturers.

Diana DiVito, an AARP member from Pennsylvania who is battling a form of leukemia, says the impending cap will have a big impact on containing the cost of the life-saving drugs she needs to fight the cancer.

“I want everyone to know how important this $2,000 cap in 2025 is going to be for people like me,” she said. “It's truly life-changing. And not everyone understands that — if you're not on one of these expensive drugs, you don't realize the impact it has on your life. It's a huge weight that's been lifted off my shoulders, and I'm incredibly grateful.”

AARP estimates that 4.1 million insured people will benefit from the cap by 2029.