New $2,000 out-of-pocket Rx drug cap takes effect in USA

The new $2,000 cap on out-of-pocket costs for prescription drugs went into effect as of January 1, 2025, the US Department of Health and Human Services (HHS) Secretary Xavier Becerra has announced.

As part of the Inflation Reduction Act, people with Medicare Part D will pay no more than $2,000 for all their covered prescription drugs for all of 2025.

“Starting January 1, millions of seniors begin saving thousands of dollars on their prescription drugs – thanks to the Inflation Reduction Act’s yearly cap on out-of-pocket prescription drug costs,” said HHS Secretary Becerra, adding: “This is yet another pivotal milestone in the Biden-Harris Administrations work to lower prescription drug costs for Americans.”