Change in Medicare prescription drug coverage will help millions

There will be a major change in 2025 in Medicare prescription drug coverage.

This year, there is a new $2,000 cap on annual out-of-pocket spending on prescription drugs.

For example, someone taking an expensive cancer drug may hit the $2,000 limit in the first two months of the new year. Once they do, they won’t have to pay anything out of pocket for the rest of the year.

The cap will help Lee Litman of St. Paul, who takes more than 20 pills a day for diabetes.

“We’re living a little longer and taking these medications a lot longer,” Litman said. “For people who may be in a more dire situation than I am, they will definitely benefit from a per-person spending cap over a year.”

An AARP report says the cap will save an average of $1,500 and some will see savings of $3,000 or more.