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How to take advantage of Medicare’s expanded drug benefit in 2025

It will be easier to spread out Part D drug costs over the year, while the total annual cost of medicines will be capped at $2,000.

8 min
A game where you have to connect prescription options with payment options
(Illustration by Emma Kumer/The Washington Post)
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Medicare’s drug benefit, known as Part D, will see major changes next year as part of a broader push to help the 50 million-plus Americans enrolled in the program manage the cost of medicines.

It’s one result of the Biden administration’s Inflation Reduction Act of 2022, which granted new authority for the government to directly negotiate with pharmaceutical companies over the prices of some drugs. The law also included two other big changes set to kick in next year: an option to “smooth” out co-payments for drugs on a monthly basis and a $2,000 cap on out-of-pocket spending for all people enrolled in Part D.