Report Says 40,000+ Minnesotans Will Save on Medicare Prescriptions

August 29, 2024

On August 28, AARP released a report that shows an estimated 40,050 of Minnesotans on Medicare prescription drug plans will see savings thanks to a new out-of-pocket cap that starts January 1, 2025.  

The savings are made possible by a provision in the 2022 prescription drug law that AARP championed that 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%, 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, which equals 40,050 in Minnesota. 

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

AARP Minnesota serves more than 620,000 members age 50 and older in the state.