Medicare Changes Cap Cancer Drug Costs at $2,000 Annually

Recent changes to Medicare introduced by the Inflation Reduction Act now cap annual out-of-pocket drug costs for beneficiaries at $2,000, significantly lowering expenses for patients requiring expensive oral cancer medications. Previously, patients could face annual costs exceeding $10,000, with much of the financial burden due early in the year, often leading to abandoned treatments. A new voluntary program, the Medicare Prescription Payment Plan (MPPP), allows enrollees to spread this $2,000 out-of-pocket maximum across monthly payments, further easing the financial strain for patients. Studies show that these measures can reduce out-of-pocket expenses for cancer drugs by up to 90%, making lifesaving medications more accessible and affordable for Medicare recipients.