New AARP Report: Impact of Historic Medicare RX Out-of-Pocket Spending Cap on Missouri Seniors
AARP has released a report that shows an estimated 55,500 of Missourians on Medicare prescription drug plans will see savings thanks to a new out-of-pocket cap that starts January 1, 2025. The savings are made possible by a provision in the 2022 prescription drug law that AARP championed which caps out-of-pocket prescription drug costs every year, beginning at $2,000 next year, for America’s 56 million Medicare drug plan enrollees.
The AARP report analyzes the number of enrollees who will benefit from the cap by state, age, gender, and race between 2025 and 2029. The findings indicate that Medicare drug plan enrollees nationwide who reach the new out-of-pocket cap will see average savings of roughly $1,500, or 56%, in 2025 for their prescription drugs.
See the full report for a detailed breakdown of the cap’s impact by state.
Craig Eichelman, AARP Missouri State Director, explained, “AARP worked diligently for the 2022 prescription drug law because we knew it would deliver essential relief to Medicare enrollees in Missouri and nationwide by reducing drug prices and out-of-pocket expenses. With the new law ensuring that no one will pay more than $2,000 next year for prescription drugs from the pharmacy, Missouri seniors on Medicare drug plans can find some comfort amidst the rising costs of other everyday necessities such as housing, groceries, and utilities. AARP Missouri, which serves nearly 700,000 members aged 50 and older in the state, recognizes the importance of this relief.”
Other findings from the report include:
· Between 3 and 4 million Part D plan enrollees nationwide are estimated to benefit from the new out-of-pocket cap every year between 2025 and 2029, including more than 54,500 here in Missouri.
· By 2029, the share of enrollees benefiting from the new out-of-pocket cap is estimated to be 10 percent or higher in 19 states, plus the District of Columbia
· More than three-quarters of Medicare drug plan enrollees who will benefit in 2025 are between the ages of 65 and 84.
Eichelman stated, “Capping the annual costs of prescription drugs for Medicare beneficiaries complements other significant cost-saving measures, including the $35 monthly cap on insulin co-pays and the elimination of charges for many vaccines, such as those for shingles and pneumonia.”
To learn more about AARP’s work to lower prescription drug prices, visit How High Rx Prices Hurt.
