70,000+ seniors in Washington state, 4.5 million seniors nationwide will save hundreds or thousands of dollars each year thanks to the new annual cap on out-of-pocket prescription drug costs for folks on Medicare Part D
Seattle, WA – Today, U.S. Senator Patty Murray (D-WA), a senior member and former Chair of the Senate Health, Education, Labor and Pensions (HELP) Committee, and U.S. Representative Kim Schrier, M.D. (D, WA-08), a member of the House Energy and Commerce Committee, held a press conference at Northaven Senior Living in Seattle to highlight how—as of January 1, 2025—seniors with a Medicare prescription drug plan will now have their out-of-pocket prescription drug costs capped at $2,000 each year. This is thanks to the Ley de Reducción de la Inflación Democrats passed through Congress in 2022—and which every single Republican voted against—and it means millions of seniors will pay significantly less for their prescription drugs this year, lowering costs for families and giving them more breathing room.
Medicare Part D—a voluntary program that helps pay for prescription drugs for people with Medicare—provides prescription drug coverage for nearly 56 million Americans. More than 4.5 millones older Americans enrolled in Part D are estimated to benefit from the new out-of-pocket spending cap that took effect January 1, 2025. Approximately 1.4 million Part D enrollees who reach the new out-of-pocket cap between 2025 and 2029 will see annual savings of $1,000 or more, and just over 420,000 will see savings of more than $3,000. In Washington state, at least 70,000 seniors are expected to see these new savings—nearly $1,900 in 2025—and that number will steadily increase over time.
Joining Senator Murray and Rep. Schrier for the press conference were Katherine O’Hara, a senior on Medicare whose prescription drug costs will go down this year thanks to the new annual cap; Dr. Thomas C. Erdmann, a doctor at Sea Mar who works with seniors on Medicare; and Darlene Storti, Executive Director of Northaven.
“Yesterday, something really important happened—a change that will save millions of people, hundreds or thousands of dollars on their prescription medications, every year from now on,” Senator Murray said at the press conference today. “Starting January 1st, anyone with a Medicare prescription drug plan—also known as Medicare Part D—now has their out-of-pocket drug costs capped at two thousand dollars each year. That’s because of a law Democrats passed—the Inflation Reduction Act—that did all sorts of things to lower health care costs and make it cheaper and easier for folks to get the medications they need.”
“As everyone knows, high drug prices come with other painful costs—like stress over how to make ends meet, or what bills to skip, in order to fill a prescription, or whether to take the risk of rationing medication,” Murray continuó. “These are impossible choices that no one should ever have to make. But they’re the reality for so many people, and so many seniors especially. And make no mistake, when prescription drugs are too expensive for people to afford—that’s dangerous. Because even the best, most effective medication can’t do someone any good if they can’t afford to get it.”
“As a primary care doctor, a congresswoman, and a patient with Type 1 diabetes who relies on insulin, I can tell you I personally understand how high drug prices impact patients in this country,” dijo la congresista Schrier. “That is why I am proud to stand by Senator Murray as we celebrate this life changing 2,000 dollar annual cap on out-of-pocket prescription drug costs for those on Medicare Part D. While we celebrate this achievement by Democrats that will help so many patients, we also know there is more work to do to make sure everyone can afford the medication they need.”
The $2,000 annual cap on prescription drug costs for folks on Medicare Part D is just one of the many actions Democrats took to lower prescription drug costs in the Ley de Reducción de la Inflación, which Senator Murray played a key role in passing as then Assistant Majority Leader and which every single Republican in Congress voted against. Most notably, the law capped the cost of insulin for folks on Medicare at $35/month—which went into effect January 1, 2023—and empowered Medicare to negotiate lower prescription drug prices for the first time ever.
In August, the Centers for Medicare & Medicaid Services (CMS) announced negotiated drug prices for ten commonly-used drugs in the first cycle of negotiations—the new, lower negotiated prices will go into effect on January 1, 2026, and will lower the prices people pay for some of the most common and expensive prescription drugs that treat heart disease, cancer, diabetes, blood clots, and more. Allowing Medicare to negotiate prescription drug costs is expected to save American taxpayers $6 billion, with people enrolled in Medicare expected to save $1.5 billion in out-of-pocket costs in 2026 alone. 15 to 20 more drugs will be added to the negotiating table every year moving forward – all thanks to the Inflation Reduction Act.
Senator Murray has championed Medicare drug price negotiation for years and worked hard with her Democratic colleagues to provide new authority for Medicare to negotiate lower drug prices for patients in the Inflation Reduction Act. In September, shortly after the Biden administration announced the results of the first ever Medicare drug price negotiations, Senator Murray met with patients and experts in Seattle to discuss the major prescription drug cost savings coming into effect.
Senator Murray’s full remarks, as delivered at today’s press conference, are below:
“Yesterday, something really important happened—a change that will save millions of people, hundreds or thousands of dollars on their prescription medications, every year from now on.
“Starting January 1st, yesterday, anyone with a Medicare prescription drug plan—also known as Medicare Part D—now has their out-of-pocket drug costs capped at two thousand dollars each year.
“That’s because of a law Democrats passed—the Inflation Reduction Act—that did a lot of things to lower health care costs and make it cheaper and easier for folks to get the medications they need.
“And let me be clear—because this is so simple, it’s easy to miss: the new Medicare drug cost cap is in effect now. And importantly—it is automatic.
“You might not hear about it from Republicans—because actually every single one of them voted against it—but that’s why we are here today: to make sure folks with Medicare coverage know this is happening, and it will save them money.
“So, what exactly does that means for seniors in Washington state? By the numbers—we are talking about 70,000 people in Washington state, saving on average, nineteen hundred dollars each year.
“But there is more to this story than just numbers—because as everyone knows, high drug prices come with other painful costs. Like stress over how to make ends meet, or what bills to skip, in order to fill a prescription, or whether to take the risk of rationing medication.
“Those are impossible choices that no one should ever have to make. But they’re the reality for so many people, and so many seniors especially.
“And make no mistake, when prescription drugs are too expensive for people to afford—that’s dangerous.
“Because even the best, most effective medication can’t do someone any good if they can’t afford to get it.
“Now, importantly—the cap on annual out-of-pocket drug costs is far from the only way Democrats are taking on Big Pharma and fighting high prescription costs.
“The Inflation Reduction Act also capped insulin costs for folks on Medicare at $35 a month, made so many vaccines—like for shingles and pneumonia—free of charge for seniors.
“It stopped drug companies from raising prices faster than inflation—a step that has already saved seniors money on a hundred different drugs. And let’s not forget—it empowered Medicare to negotiate lower prescription drug prices for the first time ever. The first ten negotiated drug prices will go into effect in 2026—and they will save seniors and taxpayers billions of dollars.
“And before Republicans try and take credit for this—remember!—Democrats passed this back in 2022 without a single Republican vote. And I am deeply concerned that some of them are already talking about repealing the entire law, and all the savings that are already in effect. And I want you to know we will do everything we can to stop them.
“I am going to fight to protect the progress we’ve made—and get the word out so people understand what this new law means, and how it’s saving them money.
“Now I’m pleased to turn it over to a colleague of mine who is a real champion in the fight to help people get quality, affordable health care—my friend, Congresswoman and Doctor Kim Schrier.”
###
Spanish 
English