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NEW AARP Report: Impact of Historic Medicare Rx Out-of-Pocket Spending Cap on Georgia Seniors
Atlanta, GA - AARP released a report that shows an estimated 101,650 of Georgians on Medicare prescription drug plans will see savings thanks to a new out-of-pocket cap that starts January 1, 2025. The savings are made possible by a provision in the 2022 prescription drug law that AARP championed which caps out-of-pocket prescription drug costs every year, beginning at $2,000 next year, for America’s 56 million Medicare drug plan enrollees.
The AARP report analyzes the number of enrollees who will benefit from the cap by state, age, gender, and race between 2025 and 2029. The findings indicate that Medicare drug plan enrollees nationwide who reach the new out-of-pocket cap will see average savings of roughly $1,500, or 56%, in 2025 for their prescription drugs.
“AARP fought hard for the prescription drug law of 2022 because we knew it would provide crucial relief for Medicare enrollees here in Georgia and across the country by lowering drug prices and out-of-pocket costs,” said Vanessa J. Payne, State Director of AARP Georgia. “Knowing they won’t pay a dime over $2,000 next year – maximum – for prescription drugs they get at the pharmacy gives Georgia seniors on Medicare drug plans some peace of mind as they struggle to keep up with rising costs for other everyday essentials like housing, groceries and utilities.”
Other takeaways from the report include:
- Between 3 and 4 million Part D plan enrollees are estimated to benefit from the new out-of-pocket cap every year between 2025 and 2029.
- By 2029, the share of enrollees benefiting from the new out-of-pocket cap is estimated to be 10 percent or higher in 19 states, plus the District of Columbia.
- More than three-quarters of Medicare drug plan enrollees who will benefit in 2025 are between the ages of 65 and 84.
The full report and a fact sheet on the findings can be found here.
To learn more about AARP’s work to lower prescription drug prices, visit How High Rx Prices Hurt.
