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Getting the latest healthcare news for you
Getting the latest healthcare news for you
The Inflation Reduction Act's Medicare drug overhaul is driving costs far beyond projections. More than 1 in 5 enrollees hit the $2,000 Part D cost cap in 2025, pushing a surge of spending onto taxpayers. With Part D costs projected to hit $346 billion by 2035, Congress may soon face tough choices between fiscal restraint and protecting seniors' drug coverage.
The Inflation Reduction Act (IRA) was designed to make prescription drugs more affordable for Medicare enrollees — and it has. But that affordability is coming with a steep price tag for taxpayers. New data from congressional Medicare advisers shows that more than 1 in 5 Part D enrollees hit the program's $2,000 annual cost cap in 2025, triggering a "catastrophic phase" where the government and private insurers absorb all remaining drug costs.
Spending on GLP-1 weight-loss drugs alone skyrocketed from $300 million in 2024 to $2 billion in 2025, while cancer and diabetes treatments drove the largest overall increases. Medicare trustees now project Part D costs will reach $222 billion this year and balloon to $346 billion by 2035 — far outpacing earlier estimates.
By the Numbers:
Why it matters: Without structural reforms, policymakers face a painful dilemma — either shift costs back onto seniors (risking medication non-adherence and rising medical debt) or let Medicare drug spending consume an ever-growing share of the national debt.
