Montanans on Medicare could see big savings on prescription drugs next year.
The Inflation Reduction Act, passed in 2022, is bringing big changes to Medicare coverage. The most notable is the federal government’s ability to negotiate prices on select drugs with pharmaceutical companies.
Those lower prices won’t go into effect until 2026.But starting next year, people on Medicare part D, which covers prescriptions, will not pay more than $2,000 a year for drugs.
Leigh Purvis with AARP says that’s a big deal for many.
“Prior to 2025, there was no cap. There were people spending upwards of $10,000 just on their Medicare Part D drugs," said Purvis.
She adds seniors on these plans will have the option to spread their costs over the entire year. In the past, seniors would have to pay their share as they picked up prescriptions.
AARP estimates over 7,000 Montanans will reach the new $2,000 cap. But that will increase over time.
Insurance companies could be on the hook for more money. Purvis says that could mean higher premiums or changes to the kinds of drugs plans cover.
She says that’s why it’s important for people to shop around when 2025 plan details are released next month.
Open enrollment for Medicare begins Oct. 15.
