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The Inflation Reduction Act, signed into law on Aug. 16, 2022, caps out-of-pocket Medicare Part D costs at $2,000 starting in 2025. A total of 5 million Part D enrollees had out-of-pocket drug costs of $2,000 or more in at least one year during the the 10-year period between 2012 and 2021, and more than 6 million Part D enrollees have paid $2,000 or more out of pocket in at least one year since 2007, according to a KFF analysis.
Yet, while millions will benefit from the cap, millions more could see premiums increase, some possibly by 50% or more, as carriers absorb the impact of that legislation.
In this second video, learn more about the potential premium hikes, particularly in rural areas where Medicare Advantage (MA) options may be limited, and how extra benefits on MA plans may be watered down.
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