In the first six months of 2024, the Inflation Reduction Act has saved 1.5 million Medicare Part D enrollees nearly $1 billion in out-of-pocket prescription drug costs, HHS said Oct. 22.
Passed in August 2022, the IRA began eliminating the 5% cost-sharing in the catastrophic phase of Medicare Part D in 2024. The catastrophic phase is the final coverage phase that starts after enrollees reach $7,050 in out-of-pocket drugs costs.
The law also set inflation caps in Medicare Part D, meaning that drugmakers would face tax penalties if their increased drug prices outpace the rate of inflation.
In 2025, the IRA caps patients' out-of-pocket costs in Part D at $2,000. The cap is expected to save more than 19 million Medicare Part D enrollees $7.4 billion in out-of-pocket expenses, according to White House Domestic Policy Advisor Neera Tanden.
More than 500,000 people with Medicare Part D saved a total of $979 million, and the average savings of one enrollee was $1,802 through the first half of 2024.