New Medicare Changes Expected to Improve Cancer Drug Affordability

Recent changes to Medicare Part D under the Inflation Reduction Act (IRA), effective in 2025, have significantly improved affordability for patients needing expensive oral cancer drugs by capping out-of-pocket annual costs at $2,000. Previously, Medicare beneficiaries could face annual expenses exceeding $10,000, which often led to patients abandoning necessary treatments due to cost. A new study highlights that, alongside the $2,000 cap, a voluntary program called the Medicare Prescription Payment Plan (MPPP) allows patients to spread their out-of-pocket costs over monthly payments, further easing the financial burden and potentially improving adherence to treatment. Researchers from the Perelman School of Medicine at the University of Pennsylvania found that this combination of reforms can greatly enhance both annual and monthly affordability for patients. These changes are expected to reduce financial barriers and may help prevent treatment abandonment among those requiring life-saving oral cancer medications. Experts emphasize that awareness and enrollment in the MPPP are key to maximizing the benefits of these new Medicare provisions.