Starting Jan. 1, older adults on Medicare will spend no more than $2,000 a year on prescription drugs when a new price cap on out-of-pocket payments from the Inflation Reduction Act goes into effect.

Medicare’s $2,000 cap on what beneficiaries pay out-of-pocket for prescription drugs covered by the health insurance program will begin on Jan. 1. The price cap will apply to drugs under Medicare Part D.

Medicare recipients will see a major change as out-of-pocket prescription drug costs are capped at $2,000 per year under the Inflation Reduction Act. Experts say the new cap could bring much-needed relief to cancer patients,