Medicare beneficiaries who take a lot of pricey medications will get a big break come 2025. That’s when the $2,000 annual cap on out-of-pocket costs for drugs bought at the pharmacy or through mail order takes effect.

Starting on Jan. 1, 2025, an estimated 19 million Medicare beneficiaries will see their out-of-pocket Medicare Part D spending capped at $2,000 for the year. This annual cap will be indexed to the rate of inflation every year going forward.

With the start of 2025, Medicare beneficiaries will benefit from a new $2,000 cap on out-of-pocket prescription drug costs, a significant change aimed at easing