# New law -- Medicare caps on drug spending in 2024

**URL:** <https://discussion.fool.com/t/new-law-medicare-caps-on-drug-spending-in-2024/100691>\
**Category:** Macro Economic Trends and Risks\
**Created:** [January 15, 2024, 9:46pm UTC](https://discussion.fool.com/t/new-law-medicare-caps-on-drug-spending-in-2024/100691 "2024-01-15T21:46:44Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![WendyBG](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/wendybg/32/67464_2.png) [@WendyBG](https://discussion.fool.com/u/WendyBG)\
**Post date:** [January 15, 2024, 9:46pm UTC](https://discussion.fool.com/t/new-law-medicare-caps-on-drug-spending-in-2024/100691/1 "2024-01-15T21:46:45Z")

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[https://www.wsj.com/health/pharma/medicare-part-d-plan-drug-cost-savings-69c3db3c?mod=hp\_lead\_pos7](https://www.wsj.com/health/pharma/medicare-part-d-plan-drug-cost-savings-69c3db3c?mod=hp_lead_pos7)

# Medicare Patients on Pricey Drugs Are Saving Big This Year

## For the first time, Part D plan patients will hit a ceiling on how much they pay out of pocket for most prescriptions

By [Liz Essley Whyte](https://www.wsj.com/news/author/liz-essley-whyte), The Wall Street Journal, Jan. 15, 2024

[Medicare patients](https://www.wsj.com/health/healthcare/medicare-advantage-enrollment-risks-923e7952) lining up to fill pricey prescriptions at the pharmacy counter this year will realize some good news: For the first time, there is a ceiling on how much they will pay in 2024 for their Part D drugs.

Changes brought about by the 2022 [Inflation Reduction Act](https://www.wsj.com/articles/inflation-reduction-drug-prices-11673628922) mean that **people on Part D plans now pay no more than roughly $3,300 on drugs annually** —a number that could shift a bit based on whether they take [brand or generic medications](https://www.wsj.com/articles/the-9-billion-upcharge-how-insurers-kept-extra-cash-from-medicare-11546617082). In 2025, that cap will change again to a flat $2,000…

Here’s how it works: People [who buy drugs](https://www.wsj.com/health/healthcare/senators-call-for-investigation-of-health-insurers-role-in-driving-up-drug-costs-6f038a58) through [Medicare](https://www.wsj.com/health/healthcare/cigna-nears-deal-to-offload-medicare-business-124a9583) Part D, the government-funded insurance program that covers most prescription drugs, pay thousands of dollars for their drugs until they reach the so-called catastrophic zone of spending. After that, they had to continue paying 5% of their drugs’ cost for the rest of the year, sometimes adding up to thousands more. This year, that 5% coinsurance was eliminated. Once Medicare patients spend roughly $3,300—the “catastrophic zone” threshold for 2024—they won’t have to [pay any more out of pocket](https://www.wsj.com/health/healthcare/same-drug-two-prices-why-the-higher-price-prevails-d24038c8) for Part D drugs\*\*.\*\*… [end quote]

This is incredibly important for cancer patients who are taking advanced chemotherapy in pill form. These are very expensive drugs.

Wendy

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**Author:** ![flyerboys](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/flyerboys/32/2123_2.png) [@flyerboys](https://discussion.fool.com/u/flyerboys)\
**Post date:** [January 15, 2024, 11:20pm UTC](https://discussion.fool.com/t/new-law-medicare-caps-on-drug-spending-in-2024/100691/2 "2024-01-15T23:20:42Z")

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I was already happy I went D instead of the other options, and now I thrilled.

d fb