AARP recently released a report that shows an estimated 160,792 of Pennsylvanians on Medicare prescription drug plans will see savings thanks to a new out-of-pocket cap that starts Jan. 1, 2025. The savings are made possible by a provision in the 2022 prescription drug law that AARP championed which caps out-of-pocket prescription drug costs every year, beginning at $2,000 next year, for America’s 56 million Medicare drug plan enrollees.

The AARP report analyzes the number of enrollees who will benefit from the cap by state, age, gender and race between 2025 and 2029. The findings indicate that Medicare drug plan enrollees nationwide who reach the new out-of-pocket cap will see average savings of roughly $1,500, or 56 percent, in 2025 for their prescription drugs.

Other findings from the report include:

• Between 3 and 4 million Part D plan enrollees nationwide are estimated to benefit from the new out-of-pocket cap every year between 2025 and 2029, including 160,792 here in Pennsylvania

• By 2029, the share of enrollees benefiting from the new out-of-pocket cap is estimated to be 10 percent or higher in 19 states, plus the District of Columbia.

• More than three quarters of Medicare drug plan enrollees who will benefit in 2025 are between the ages of 65 and 84.