Millions of Medicare enrollees are likely to see relief in 2025 when a $2,000 cap on out-of-pocket prescription drug-spending goes into effect.

Medicare enrollees will now pay a maximum of $2,000 on out-of-pocket prescription drug costs annually as part of another provision of the Inflation Reduction Act. The limit applies to prescription drugs bought at pharmacies and through mail orders, which are covered through Medicare Part D.

Seniors on Medicare Part D will never pay more than $2,000 out-of-pocket for prescription drugs annually, thanks to a provision in the 2022 Inflation Reduction Act which takes effect this year.