The $2,000 Part D Drug Cap Is Now in Effect
Out-of-pocket spending on covered prescriptions is now capped at $2,000 a year — the old “donut hole” is gone.
Medicare News · Part D & Drug Pricing
Out-of-pocket spending on covered prescriptions is now capped at $2,000 a year — the old “donut hole” is gone.
What changed
Starting in 2025 and continuing in 2026, Medicare caps what you pay out of pocket for covered Part D drugs at $2,000 for the year. Once you hit it, covered prescriptions cost you nothing for the rest of the year. The old coverage-gap “donut hole” no longer applies.
Who it affects
Anyone with high prescription costs on a Part D plan or a Medicare Advantage plan with drug coverage — especially people on specialty or brand-name drugs who used to hit the donut hole.
What to do
You don’t have to do anything to get the cap — it applies automatically. But it’s still worth a yearly plan review, because premiums and formularies change even with the cap in place. You can also spread costs monthly with the payment-plan option.
Learn more
Not sure what this means for you? Call us free at 435-219-5120 (TTY: 711) — no cost, no pressure. See more in the Medicare News center or the Help Center.
Sources
- Medicare.gov — drug coverage (Part D) — Official source
Talk to a local, licensed agent
Rocco DeLuca can walk you through your options — free, no pressure.