What is The Medicare Part D Cap on Drug Costs

Starting in 2025, Medicare made a big change that could save many people thousands of dollars on their prescriptions. For the first time ever, there was a limit on how much you pay out of pocket for your medications each year with a Part D drug plan.

What Changed?

Medicare Part D did not have a real cap on prescription drug costs. Even after you hit the “catastrophic coverage” level, you could still be stuck paying copays and coinsurance for expensive drugs (donut hole). That means some people ended up spending thousands of dollars every year.

But in 2025, the Inflation Reduction Act changed Part D plans for the future. Beginning in 2025, Part D Plans had a $2,000 yearly cap. Once you spent $2,000 on covered prescriptions in a calendar year, you didn't pay anything more for the rest of that year. In 2026, this Part D yearly cap will incease to $2,100.

Why This Is Good News?

• Peace of mind: You’ll know the most you might spend on prescriptions is $2,100 a year.

• Easier budgeting: No more surprise bills that throw off your finances.

• Better access to medicine: You may be able to take the drugs your doctor prescribes without worrying about the cost.

  
  

The Bottom Line

Prescription drug costs have been a huge concern for people on Medicare. With this new $2,100 cap, Medicare is offering real financial protection and relief. If you take expensive prescriptions—or if you’ve ever worried about what you’d do if you needed one—this change will make a big difference. Selby Insurance offers free Part D plan searches with all of the drug plans in Arkansas. Let Selby Insurance see how the new yearly cap can help you. Give us a call in Jonesboro, AR at (870) 336-2121. To learn more: https://www.selbyinsurance.com/contact-us