How the Part D Out-of-Pocket Cap Changes the Math on Expensive Prescriptions
An annual limit on drug spending took effect in 2025. For people on costly medications, it changes which plan is cheapest.
By Priya Anand, Reporter, Medicare and Health Costs
Published 5 min read
Beginning in 2025, Medicare Part D introduced an annual cap on out-of-pocket spending for covered prescription drugs. The limit is adjusted each year. Once an enrollee reaches it, they pay nothing further for covered drugs for the rest of the calendar year.
Enrollees can also choose to spread their out-of-pocket costs across the year in monthly payments rather than paying large amounts at the pharmacy early in the year.
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Reporter, Medicare and Health Costs
Priya Anand writes about Medicare enrollment, prescription drug coverage and the health costs that fall to retirees.
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