The most important Medicare drug benefit change in 21 years began on January 1, 2026, creating a major financial shift for hundreds of thousands of seniors in Los Angeles County. Under the Inflation Reduction Act, Medicare Part D now includes a $2,000 annual out-of-pocket cap on covered prescription drugs — the first limit ever placed on yearly drug spending for seniors.
Before 2026, there was no cap, and people with serious conditions like cancer, diabetes, autoimmune disease, or HIV could pay $5,000 to over $10,000 a year even after insurance, forcing many to choose between medicine and basic needs. That system has now ended.
