Nevada seniors’ drug costs are now capped at $2,000 per year

The out-of-pocket cost of prescription drugs for Medicare Part D enrollees is now capped at $2,000 per year, thanks to President Joe Biden’s Inflation Reduction Act.

A provision of the 2022 Inflation Reduction Act (IRA) officially went into effect earlier this month, meaning most Nevada seniors will now have their annual out-of-pocket costs for prescription medications limited to just $2,000. 

More than 19 million Americans nationwide are able to take advantage of the new spending limit for Medicare Part D, which is open to all American citizens 65 and older, and officially went into effect Jan. 1, according to the White House. President Joe Biden said at a Dec. 31 news conference that enrollees are expected to save on average $400 per year, and that the new provision would prove to be a “game changer” for seniors on a fixed income. 

“Before I took office, people with Medicare who took expensive drugs could face a crushing burden, paying $10,000 a year or more in copays for the drugs they need to stay alive,” Biden said. “My Inflation Reduction Act has changed Medicare for the better, and as a result Americans will have more money back in their pockets in the years to come.” 

In a statement Wednesday, Nevada Democratic US Sen. Jacky Rosen — who voted to pass the IRA — highlighted how the 2022 law has also capped insulin costs for seniors at $35 per month, and said she’ll continue to work with colleagues for ways to bring down prices in health care and other sectors. 

“I’m proud to have helped pass the law that is helping lower expenses for Nevada’s seniors at a time when they’re facing rising costs,” Rosen said. “I’ll keep doing everything I can in the US Senate to lower costs for all Nevadans.” 

The new rules also apply to Medicare Advantage plans, which combined with Medicare Part D covers an estimated 50 million seniors, according to the Kaiser Family Foundation. CBS News reported that drugs prescribed outside Medicare’s list of covered medications are not subject to the $2,000 cap, but enrollees may ask their doctor to prescribe a drug that is covered by the formulary. 

In other cases, such as with medication new to the market, or drugs where there aren’t alternatives, enrollees may ask Medicare for an exception, according to the CBS report. 

But certain pharmaceuticals, such as some injectables and others not typically self-administered, are not subject to the new cap, and it also doesn’t cover premiums for Part D, according to CBS.