Medical Journal Confirms that Medicare’s Annual Cap on Out of Pocket Drug Costs is Keeping Seniors on their Medications

May 15, 2026

Medical Journal Confirms that Medicare’s Annual Cap on Out of Pocket Drug Costs is Keeping Seniors on their Medications

New research shows that the Inflation Reduction Act’s provision capping yearly prescription drug costs has helped Medicare patients afford and stay on their prescription medications. The annual out-of-pocket drug costs cap is $2,100 for 2026.

Last month the JAMA Internal Medicine published a study examining the link between the out-of-pocket cap and patients taking prescription drugs as directed, a process known as “patient
adherence.” The study found that after the cap took effect, Medicare beneficiaries were less likely to skip or discontinue their prescription drugs.

“This finding is welcome news and yet another example of how this provision is helping older Americans save money and stay healthy,” said Richard Fiesta, Executive Director of the Alliance. “We fought for more than 20 years for policies to lower the cost of prescription drugs, including annual out-of-pocket costs and requiring Medicare to negotiate better prices directly with drug corporations. Now, we urge Congress to continue putting patients over profits by increasing the number of drugs Medicare can negotiate lower prices for each year and making those savings available to all Americans.”