Inflation Reduction Act and Medicare Part D Redesign Program Instructions for 2025
- Vicki Guy
- Jan 8
- 1 min read
Updated: Jan 9
By: CMS.gov
January 8, 2025
"People with Medicare will benefit from lower prescription drug costs and a redesigned prescription drug program as a result of the new drug law.
Medicare Prescription Payment Plan
For the first time, beginning in 2025, the drug law, known as the Inflation Reduction Act, requires all Medicare prescription drug plans (Medicare Part D plans) — including both standalone Medicare prescription drug plans and Medicare Advantage plans with prescription drug coverage — to offer enrollees the option to pay out-of-pocket prescription drug costs in the form of capped monthly installment payments instead of all at once at the pharmacy.
Part D Redesign Program Instructions for 2025
CMS is detailing improvements to the structure of the Part D drug benefit for Coverage Year (CY) 2025 that will result in lower drug costs for millions of people with Medicare through the release of the CY 2025 Part D Redesign Program Instructions. Thanks to the Inflation Reduction Act, in 2025 annual out-of-pocket costs will be capped at $2,000 for people with Medicare Part D.
Final CY 2025 Part D Redesign Program Instructions (PDF) (April 1, 2024)
To read more from cms.gov/inflation-reduction-act-medicare/part-d-improvements"
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