President Joe Biden has announced that a new policy under the Inflation Reduction Act will implement a $2,000 annual cap on prescription drug costs for Medicare beneficiaries. The change aims to make healthcare more affordable and accessible.

"Before I took office, people with Medicare who took expensive drugs could face a crushing burden, paying $10,000 a year or more in copays for the drugs they need to stay alive," stated President Biden. He emphasized that this move marks progress toward making healthcare a right rather than a privilege.

The policy initially set a cap at approximately $3,500 in 2024. In the first half of the year alone, this measure saved Medicare recipients $1 billion in cost-sharing. With the new cap fully effective from January 1, 2025, costs will be limited to $2,000 per year. This adjustment is expected to benefit 19 million individuals with an average saving of $400 each.

Biden declared this as "a game changer for the American people," reflecting his administration's commitment to alleviating financial burdens associated with healthcare.

He further noted that "My Inflation Reduction Act has changed Medicare for the better," projecting that these changes will continue to provide financial relief for Americans in future years.