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Before the law, there was no out-of-pocket cap for Medicare's Part D, the section that covers prescription drugs, which left seniors at risk of "significant financial burdens," the AARP noted.
Most seniors don't pay a premium for Part A, but they do for Part B. The standard Part B monthly premium rose from $174.70 in 2024 to $185.00 in 2025. 5 2025 Medicare Changes Every Retiree Should Know
Starting Jan. 1, older adults on Medicare will spend no more than $2,000 a year on prescription drugs when a new price cap on out-of-pocket payments from the Inflation Reduction Act goes into effect.
The Medicare program became operational in July 1966, offering hospital and medical insurance. It now provides additional coverage for more people. Learn more here.
Medicare Prescription Drug, Improvement, and Modernization Act; Long title: An act to amend title XVIII of the Social Security Act to provide for a voluntary prescription drug benefit under the medicare program and to strengthen and improve the medicare program, and for other purposes. Acronyms (colloquial) Medicare Modernization Act or MMA ...
The 15 drugs accounted for $41 billion, or 14%, of total Medicare Part D spending between Nov. 1, 2023, and Oct. 1, 2024.
Although Medicare enrollees typically don't pay a premium for Part A, which covers hospital care, there's a cost for being admitted to the hospital. In 2025, you'll face a $1,676 inpatient ...
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