August 28, 2024, Press Release from AARP Ohio: COLUMBUS, Ohio-Today, AARP released a report that shows an estimated 127,193 of Ohioans on Medicare prescription drug plans will see savings thanks to a new out-of-pocket cap that starts January 1, 2025. The savings are made possible by a provision in the 2022 prescription drug law that AARP championed which caps out-of-pocket prescription drug costs every year, beginning at $2,000 next year, for America’s 56 million Medicare drug plan enrollees.
The AARP report analyzes the number of enrollees who will benefit from the cap by state, age, gender, and race between 2025 and 2029. The findings indicate that Medicare drug plan enrollees nationwide who reach the new out-of-pocket cap will see average savings of roughly $1,500, or 56%, in 2025 for their prescription drugs.
“AARP fought hard for the 2022 prescription drug law because we knew lowering drug prices and out of pocket costs would provide critical relief for Medicare enrollees here in Ohio and across the country,” said Jenny Carlson State Director of AARP Ohio, which serves more than 1.5 million members age 50 and older in the state. “Knowing they won’t pay a dime over $2,000 next year at the pharmacy counter for their prescriptions gives Ohio seniors on Medicare drug plans some peace of mind especially as they face higher costs for things like groceries and utilities.”
Other findings from the report include:
- Between 3 and 4 million Part D plan enrollees nationwide are estimated to benefit from the new out-of-pocket cap every year between 2025 and 2029, including up to 163,000 here in Ohio.
- By 2029, the share of enrollees benefiting from the new out-of-pocket cap is estimated to be 10 percent or higher in 19 states, plus the District of Columbia.
- More than three-quarters of Medicare drug plan enrollees who will benefit in 2025 are between the ages of 65 and 84.
The full report and a fact sheet on the findings can be found here.
“Capping yearly out-of-pocket prescription drug costs for Ohio’s Medicare enrollees builds on other new and important common sense measures of the legislation, such as capping insulin co-pays at $35 a month and making many vaccines, such as shingles and pneumonia, free,” said Carlson. “
“In Ohio, where 67% of voters 50 and older consider the cost of prescription drugs a critical issue and an estimated 127,193 Ohioans on Medicare prescription drug plans expected to benefit from this cap starting January 1, 2025, the financial relief is both timely and necessary.”
To learn more about AARP’s work to lower prescription drug prices, visit How High Rx Prices Hurt.
About AARP
AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.
