New savings for seniors in 2025 as Democrats’ Inflation Reduction Act continues lowering drug costs
East Providence, RI – U.S. Senators Jack Reed and Sheldon Whitehouse and Congressmen Seth Magaziner and Gabe Amo today visited PACE Organization of Rhode Island to highlight additional prescription drug savings on the way for Rhode Island seniors thanks to Democrats’ Inflation Reduction Act. The delegation also encouraged seniors to maximize their savings by taking advantage of the Medicare open enrollment period, which runs through December 7.
“Prescription drugs are too expensive and for years American taxpayers and seniors were being unfairly overcharged. We passed the Inflation Reduction Act so Medicare could negotiate lower prices for life-saving medications. We are finally starting to see out-of-pocket costs being capped. And with more savings on the way, consumers can’t afford to have the rug ripped out from under them by Big Pharma and their allies who want to undo progress and put profits over people,” said Reed. “I will continue working to raise awareness about Medicare open enrollment and help people afford their prescription medications. There are a host of resources available to help Rhode Islanders shop and compare and find a plan that best meets their needs. And soon, millions of Americans on Medicare will save even more at the pharmacy counter as the government uses its bulk purchasing power to help negotiate lower prices.”
“Democrats’ Inflation Reduction Act made major progress lowering health care and prescription drug costs for seniors,” said Whitehouse, who has long championed cost-lowering measures like allowing Medicare to negotiate drug prices. “The savings from our law really ramp up next year for seniors on Medicare Part D, which will be welcome news to Rhode Islanders living on fixed incomes.”
“In the wealthiest nation in the world, no senior should have to ration medication and forgo treatment because they can’t afford to pay for health care and lifesaving prescription drugs,” said Magaziner. “Thanks to the Inflation Reduction Act passed by Congressional Democrats, seniors on Medicare Part D will save thousands of dollars on out-of-pocket costs for health care and prescriptions drugs, and we will continue working to expand Medicare drug price negotiation and lower costs for Rhode Islanders.”
“I am pleased to join Senator Whitehouse in encouraging our seniors to take advantage of the benefits Democrats secured in the Inflation Reduction Act to lower healthcare costs,” said Amo. “Rhode Islanders are already benefiting from lower health and drug costs because of the law. Good news for next year is that the savings for our seniors on Medicare Part D will be supercharged for those living on fixed incomes.”
In 2025, the Inflation Reduction Act will cap out-of-pocket costs for some Medicare Part D beneficiaries at $2,000, resulting in $23 million in expected savings for 68,000 Rhode Islanders. This year, the law’s changes to Medicare’s prescription drug benefits capped out-of-pocket costs at approximately $3,500, saving 57,000 Medicare Part D enrollees in Rhode Island about $11 million.
“I want to thank RI’s congressional delegation for their continued fight for our senior population,” said East Providence Mayor Bob DaSilva. “These prescription drug savings that are on the way for Rhode Islanders will have a positive impact on the livelihoods of our senior population throughout the City and state.”
“Having access to an array of medications is critical for the older adults PACE serves but the ever-rising costs are a major challenge,” said Joan Kwiatkowski, Chief Executive Officer of PACE Organization of Rhode Island. “We are fortunate in Rhode Island that our congressional delegation understands the issue and is working hard to control Medicare prescription drug costs.”
In addition to capping out-of-pocket costs for Rhode Islanders on Medicare, the Inflation Reduction Act allowed Medicare to negotiate drug prices for the first time ever. These new, lower prices will cut the cost of some of the most expensive and most commonly used drugs by nearly 40 to 80 percent starting in 2026. The Inflation Reduction Act capped seniors’ monthly out-of-pocket insulin costs at $35, saving about 5,000 Rhode Islanders about $485 each year, and made many vaccines available to seniors at no cost. The law also protects Medicare beneficiaries from drug company price hikes that outpace inflation.
The 2025 Medicare open enrollment period runs through December 7. During open enrollment, seniors on Medicare can compare coverage options, like Traditional Medicare and Medicare Advantage, choose health and drug plans for 2025, and see how the Inflation Reduction Act is already helping them save money on health care costs.
Seniors looking to compare plans should visit Medicare.gov. Whitehouse’s constituent services staff is available to help answer seniors’ questions at (401) 453-5294 or at whitehouse.senate.gov.
Over 230,000 Rhode Islanders are currently enrolled in Medicare.
