Medicare $2,000 out-of-pocket cap boosts use of high-cost drugs, study shows

A recent study published in JAMA Health Forum examined how the Inflation Reduction Act’s $2,000 annual out-of-pocket limit for Medicare beneficiaries affected drug consumption.

The analysis found that overall medication use rose sharply after the cap took effect in January 2025, with the biggest jumps seen for the most expensive therapies.

Researchers attribute the increase to lower financial barriers, allowing patients to obtain treatments they previously could not afford.

The findings suggest that the cost-sharing reform may improve access to high-price drugs, though the study did not assess clinical outcomes or cost impacts on the Medicare program.