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New Cap to Save Alabamians on Prescriptions

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In a significant development for senior citizens in Alabama, a new legislative provision is set to save thousands of dollars on prescription medication costs starting next year. According to a report by AARP, 61,359 Alabamians with Medicare drug plans are expected to benefit from a newly enacted cap on prescription drugs in 2025. The report projects that by 2029, over 76,000 Alabamians will experience savings on their prescriptions.

Candi Williams, the state director of AARP Alabama, emphasized the importance of this measure, stating, “Knowing they won’t pay a dime over $2,000 next year – maximum – for prescription drugs 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.”

Beginning on January 1, the provision will impose an annual limit of $2,000 on out-of-pocket prescription costs for individuals enrolled in the Medicare Part D plan. This price cap was included as part of the 2022 Inflation Reduction Act passed by Congress. AARP of Alabama, which serves more than 400,000 members aged 50 and older in the state, highlighted that Medicare drug plan enrollees nationwide are expected to save an average of approximately $1,500 in 2025 on their prescription drugs.

The report also noted that some Part D enrollees have faced out-of-pocket prescription costs exceeding $10,000 annually.

New prescription savings for seniors

A 2023 study by the American Medical Association revealed that many older Americans have had to skip doses of their medication or not fill prescriptions due to high drug prices.

The report found that more than three-quarters of Medicare drug plan enrollees who will benefit in 2025 are between the ages of 65 and 84. Williams further highlighted additional cost-saving measures included in the Inflation Reduction Act, such as capping insulin co-pays at $35 a month and making many vaccines, such as shingles and pneumonia, free. Rep.

Terri Sewell (D-Birmingham) was the sole member of Congress from Alabama to vote in favor of the Act in 2022, while Reps. Jerry Carl (R-Mobile) and Mike Rogers (R-Saks) did not vote. The remaining members of Alabama’s Congressional delegation voted against the package.


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  • AL.”61,000 Alabamians will save money on prescriptions next year as price cap takes effect”.
  • AARP.”New Medicare Part D Out-Of-Pocket Spending Cap is an Important Improvement for Enrollees Facing High Prescription Drug Costs”.
  • BloombergLaw.”Pharmacies, Drugmakers on Edge for Rollout of US Drug Price Cuts”.

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