There’s a major change in 2025 to Medicare’s prescription drug coverage.      

This year, there’s a new $2,000 cap on annual out-of-pocket prescription drug expenses.

For example, a person who takes a pricey cancer drug may hit the $2,000 limit in the first month or two of the new year. Once they do, they won’t have to pay anything out-of-pocket for the remainder of the year.

The cap will help Lee Litman of St. Paul, who takes more than 20 pills a day for diabetes.

“We’re living a little longer and we’re on these medications a lot longer,” Litman said. “For people who are maybe in a more dire situation than I am, certainly will benefit from a cap expenses per person over a year.”

A report by AARP says the cap will save an average of $1,500 and some will see savings of $3,000 or more.