Thousands of senior citizens in Alabama are expected to save money on prescription medication costs beginning next year, according to a new report.
In 2025, the new cap on prescription drugs is expected to benefit 61,359 Alabamians who have Medicare drug plans, according to a new report by AARP. By 2029, the report estimates, more than 76,000 Alabamians will see savings on prescriptions.
“Knowing they won’t pay a dime over $2,000 next year – maximum – for prescription drugs they get at the pharmacy gives Alabama seniors on Medicare drug plans some peace of mind as they struggle to keep up with rising costs for other everyday essentials like housing, groceries and utilities,” said said Candi Williams, the state director of AARP Alabama.
Beginning Jan. 1, the prescription drug provision will place an annual limit of $2,000 on the amount of money people enrolled in the Medicare Part D and Advantage plans with prescription coverage pay for out-of-pocket prescription costs.
The price cap was included in the 2022 Inflation Reduction Act passed by Congress.
AARP of Alabama serves more than 400,000 members, age 50 and older, in the state.
AARP’s report found that Medicare drug plan enrollees nationwide will see average savings of roughly $1,500 in 2025 for their prescription drugs.
Some Part D enrollees have faced out-of-pocket prescription costs that exceeded $10,000 each year, according to the report. A 2023 study by the American Medical Association found that many older Americans have had to skip doses of their medication or not fill prescriptions because of high drug prices.
More than three-quarters of Medicare drug plan enrollees who will benefit in 2025 are between the ages of 65 and 84.
“Limiting how much seniors on Medicare drug plans pay for prescription drugs every year builds on other new and important cost-saving measures, such as capping insulin co-pays at $35 a month and making many vaccines, such as shingles and pneumonia, free,” said Williams, listing other measures included in the Inflation Reduction Act.
Rep. Terri Sewell (D-Birmingham) was the only member of Congress from Alabama to vote in favor of the Act in 2022. Reps. Jerry Carl (R-Mobile) and Mike Rogers (R-Saks) did not vote. The rest of Alabama’s Congressional delegation voted against the package.
