NEW AARP Report: Impact of Historic Medicare Rx Out-of-Pocket Spending Cap on Alabama Seniors
By Sheila Duncan
Reporter
Today, AARP released a report revealing that an estimated 61,000 Alabamians on Medicare prescription drug plans will benefit from a new out-of-pocket spending cap starting January 1, 2025. This milestone is a result of the 2022 prescription drug law, championed by AARP, which will limit annual out-of-pocket costs for America’s 56 million Medicare drug plan enrollees to $2,000.
The AARP report provides a detailed analysis of the impact of this cap by state, age, gender, and race from 2025 to 2029. The findings show that Medicare drug plan enrollees who reach the new out-of-pocket cap will save an average of $1,500, or 56%, in 2025.
“AARP fought hard for the 2022 prescription drug law because they recognized its potential to provide vital relief for Medicare enrollees in Alabama and across the nation by reducing drug prices and out-of-pocket expenses. This offers Alabama seniors on Medicare drug plans some peace of mind as they face rising costs in other areas of life, like housing, groceries, and utilities.”
Key Findings from the Report Include: Estimated Impact: Between 3 and 4 million Part D plan enrollees nationwide are expected to benefit from the new out-of-pocket cap annually from 2025 to 2029, including over 61,000 in Alabama. State Impact: By 2029, 10% or more of enrollees in 19 states, including Alabama, plus the District of Columbia, are expected to benefit from the new cap. Age Impact: More than three-quarters of the Medicare drug plan enrollees who will benefit in 2025 are aged 65 to 84 and limiting how much seniors on Medicare drug plans pay for prescription drugs every year builds on other important cost-saving measures, such as capping insulin co-pays at $35 a month and making many vaccines, including shingles and pneumonia, free.
(source AARP)
