NEW AARP Report: Impact of Historic Medicare Rx Out-of-Pocket Spending Cap on New York Seniors

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Aug 29, 2024, 19:36 ET

Savings Possible Thanks to the Prescription Drug Law Championed by AARP

NEW YORK, Aug. 28, 2024 /PRNewswire/ -- Today, AARP released a report that shows an estimated 261,000 New Yorkers 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 New York and across the country by lowering drug prices and out-of-pocket costs," said AARP New York State Director Beth Finkel, which serves over 2.2 million members age 50 and older in the state "Knowing they won't pay a dime over $2,000 next year - 2 maximum – for prescription drugs they get at the pharmacy gives 261,047 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 findings from the report include:

Between 3 and 4 million Part D plan enrollees nationwide are estimated to benefit from the new out-of-pocket cap, rising from an estimated 261,047 in 2025 to 327,549 by 2029 in New York.
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, including 14.5% in New York, 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.

"Limiting how much seniors on Medicare drug plans pay for prescription drugs every year builds on other new and important cost-saving measures, such as capping insulin co-pays at $35 a month and making many vaccines, such as shingles and pneumonia, free," said Finkel.

To learn more about AARP's work to lower prescription drug prices, visit How High Rx Prices Hurt.

About AARP
AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.

SOURCE AARP New York