Medicare Part D Enrollees Reaching the Out-of-Pocket Limit by June 2024

The Inflation Reduction Act established a limit on out-of-pocket spending (“the 2024 cap”) for enrollees with very high prescription drug spending in Medicare Part D, for the first time in the history of the program. More than half a million enrollees who did not qualify for the Low-Income Subsidy hit the catastrophic cap on out-of-pocket costs by June 30, 2024, saving enrollees nearly $1 billion out-of-pocket, an average $1,802 each in the first half of this year.

*This content is in the process of Section 508 review. If you need immediate assistance accessing this content, please submit a request to Kenneth Finegold, kenneth.finegold@hhs.gov. Content will be updated pending the outcome of the Section 508 review.

Related Products:

• Medicare Drug Price Negotiation Program: Medicare Prices Negotiated for 2026 Compared to List and U.S. Market Prices
• Inflation Reduction Act Research Series: Medicare Part D Enrollee Vaccine Use After Elimination of Cost Sharing for Recommended Vaccines in 2023
• Inflation Reduction Act Research Series: Projected Impacts for Women Enrolled in Medicare
• Inflation Reduction Act Research Series: Projected Impacts for Rural Medicare Enrollees
• Medicare Enrollees and the Part D Drug Benefit: Improving Financial Protection through the Low-Income Subsidy
• Inflation Reduction Act Research Series: Medicare Part B Inflation Rebates in 2023