More Than 3 Million Senior Citizens in NYS Now Have Cap On Out-Of-Pocket Prescription Drug Costs

More than three million senior citizens in New York State now have a cap on total out-of-pocket prescription drug costs.

U.S. Senate Majority Leader Chuck Schumer said this is part of the Inflation Reduction Act. He said there is now an annual cap on prescription drug out-of-pocket costs in Medicare Part D with costs capped at $3,300. Schumer said that the cap will go even lower in 2025 to a $2,000 out-of-pocket cap on prescription drugs.

Each year, roughly 1 in 25 seniors spend above this cap on prescription drugs. This includes people with numerous cancers, including leukemia, multiple myeloma, bone, lung and brain cancer, cystic fibrosis, organ transplant patients, hypertension and more.

In addition, starting this year, the federal government will be able to go after pharmaceutical companies to pay rebates to Medicare for price hikes on prescription drugs that over 750,000 seniors take per year.

The White House recently announced 48 Medicare Part B drugs raised their prices faster than inflation, and some drug companies raised prices of certain medications faster than inflation for every quarter over the last year.

Provisions in the Inflation Reduction Act will now require these companies to pay rebates back to Medicare, saving seniors who take these drugs between $1 and $2,786 per dose depending on their medication.