Maui resident Susan Baylosis and her mother both use Medicare Part D insurance to pay for their medicines.
So far, their co-payments have been manageable. They haven’t had to take expensive brand-name prescription drugs.
But Susan, an advocate for caregivers, knows that a catastrophic illness like cancer could be financially devastating even with insurance.
“The everyday person doesn’t want to think about it,” she says. “If I had to pay for expensive medications, I would have to find ways to cut down on other expenses, like food or gas. The average person doesn’t make that kind of money.”
Starting next year, a new law will cap Medicare prescription drug plan out-of-pocket expenses at $2,000. Hawai‘i’s 167,422 Part D Medicare beneficiaries will have the peace of mind of knowing that they won’t be forced to choose between paying for food and medicine or not taking medicines because of the high cost of prescription drugs.
A recent AARP study estimates that 3.2 million older Americans, including more than one in 10 Hawai‘i kūpuna with Medicare drug plans, will see lower drug costs next year because of the cap. The average savings next year will be roughly $1,500 for kūpuna who hit the drug cap.
By 2029, about 4.1 million people, roughly 9.6% of Medicare beneficiaries, will see savings. In Hawai’i the savings will help an estimated 24,437 kūpuna, or 13% of those with Part D drug plans who do not qualify for subsidies.
Prior to the passing of this law, Part D plans did not have a limit on out-of-pocket spending.
“AARP was instrumental in Congress passing the prescription drug law of 2022 to lower prices and out-of-pocket costs for Medicare enrollees,” AARP CEO Jo Ann Jenkins says. “As we approach January 2025, we want every senior in America to know that, thanks to the new annual cap which limits their out-of-pocket costs, they will have more money to invest in their families, spend on their broader health needs or simply save to achieve greater financial stability.”
Since Medicare Open Enrollment is in effect until Dec. 7, Medicare beneficiaries should review their Part D drug plans for changes resulting from the new law and shop around.
The Hawai‘i State Health Insurance Assistance Program (SHIP) is a free service that can help answer questions about Medicare enrollment. Go to hawaiiship.org, or call the Hawai‘i SHIP Helpline at 808-586-7299 or toll-free at 1-888-875-9229.
AARP HAWAII (nonprofit)
1001 Bishop St., #625, Honolulu, HI 96813
808-545-6000 | hiaarp@aarp.org | aarp.org/hi
AARP is a non-partisan organization dedicated to empowering Americans 50 and older to choose how they live as they age.
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