January 16, 2024

Manchin: Thanks To The Inflation Reduction Act, Seniors Now Have A Cap On Medicare Prescription Drug Spending

Washington, DC – U.S. Senator Joe Manchin (D-WV) announced new rules under the Inflation Reduction Act that cap total out-of-pocket prescription drug costs for seniors on Medicare. This first-of-its-kind cap of an estimated $3,300 on prescription drug out-of-pocket costs in Medicare Part D will lower costs for seniors in West Virginia and across the United States.

“No West Virginian or American should have to choose between life-saving medication and food on their table or a roof over their heads,” said Senator Manchin. “I fought to ensure the Inflation Reduction Act included this cap on total out-of-pocket prescription drug costs, along with several other key provisions to lower healthcare expenses for seniors and families, and I’m thrilled to see these rules going into effect. This is great news for our nation’s seniors as well as continued evidence of the Inflation Reduction Act delivering life-changing solutions for the American people.”

Each year, roughly 1 in 25 seniors spend above this cap on prescription drugs. This includes people with cancer, including leukemia, multiple myeloma, bone, lung and brain cancer, cystic fibrosis, organ transplant patients, hypertension and more. This cap is not just for those who have chronic, ongoing conditions, but also those who over the course of their life may be diagnosed with one of these conditions.

For example, seniors who last year took any of three commonly-used cancer drugs – Lynparza, Ibrance, and Xtandi – averaged about $12,000 per year in spending on those drugs alone. Seniors who take those drugs in 2024 will save about $9,000 in spending on their cancer drugs, not to mention any other drugs they need that would be given to them free-of-charge once they hit the out-of-pocket limit. The cap will go even lower the following year in 2025 to a $2,000 out-of-pocket cap on prescription drugs.