The Inflation Reduction Act continues to be the big news for Part D drug plans. Here are major provisions of the new law, which was passed in 2022:
In 2023, the cost to consumers of insulin in Part D drug plans was capped at $35 a month for covered insulin, with no deductibles. Drug companies also began paying penalties — to Medicare, not you, unfortunately — if they increased prices by more than the general rate of inflation.
In 2024, people with high drug costs will no longer have to pay 5 percent for their drugs when they are in what’s called the catastrophic phase of their Part D plan. This phase is triggered when your spending and certain spending by your plan have reached $8,000
Medicare low-income drug support payments will be expanded.
From the years 2024 to 2030, annual Part D premium increases can be no more than six percent.
In 2025, out-of-pocket drug costs will be capped at $2,000 a year.
And in 2026, for the first time, Medicare will have the right to negotiate drug prices with pharmaceutical companies.
The maximum annual deductible will increase to $545 from $503 in 2023. Some plans set lower deductibles.
KFF has a detailed assessment of 2024 Part D plans.