OPINION: New year brings new Medicare savings for 367,000 New Mexicans

The holiday season was a time to come together with loved ones, share joy, and reflect on the past year.

As the U.S. Department of Health and Human Services (HHS) acting regional director representing New Mexico, one of the things I am most proud of last year was our work to lower the costs of prescription drugs in the Medicare program through the Inflation Reduction Act (IRA).

For years, I have heard concerns about the rising costs of medicine from people across New Mexico, especially seniors living on a fixed income, but now this law is bringing relief to millions of people with Medicare.

As we enter 2025, with new annual resolutions, budgeting and planning for healthy spending may be an area people plan to improve in. For many of us, our budgets include daily necessities including medications, which can be an overwhelming financial challenge for those with a condition like diabetes and heart disease, where the monthly cost of medications can add up to thousands of dollars.

That’s why I want to make sure New Mexicans are aware that the Inflation Reduction Act caps out-of-pocket prescription drug costs at $2,000 for people with Medicare Part D, starting Jan. 1. Prior to the Inflation Reduction Act, some patients had to pay tens of thousands of dollars in prescription drug costs each year.

That’s why this new policy is a game-changer to the more than 367,000 New Mexico residents with Medicare Part D. This year, I made three visits to the Albuquerque area and when I had the opportunity to talk with seniors, they were thrilled to hear that their out-of-pocket expenditures will be limited to the $2,000 cap and that the IRA is negotiating prices that will help them with their chronic illnesses like diabetes and heart disease.

This new cap is not the only benefit available to people with Medicare. In January 2025, the Inflation Reduction Act also gives Medicare Part D enrollees the option to spread their prescription drug costs out over the course of the year. And since 2022, the law has been lowering costs for Medicare enrollees by making recommended vaccines, like shingles and RSV, available free of charge.

Across Region 6, multiple people have indicated that they have received recent vaccinations at no cost to them, compared with having to pay as much as $300 for some vaccinations in previous years. Additionally, last August, HHS was proud to announce new, lower prices for 10 drugs selected for the first cycle of Medicare drug price negotiations. By Feb. 1, HHS will announce up to 15 more drugs selected for the negotiation program.

This law is all about dignity, hope, and keeping the Medicare program strong for years to come. That’s why I am spreading the word in New Mexico to raise awareness about these new benefits.

People with Medicare are already seeing some economic relief. No doubt the January implementation of the out-of-pocket drug cap and the ability to spread drug payments throughout the year will benefit many New Mexicans in 2025. To find out more, go to LowerDrugCosts.gov or MedicamentosBajoPrecio.gov.

Julia Lothrop is the U.S. Department of Health and Human Services acting regional director for Arkansas, Louisiana, New Mexico, Oklahoma, Texas, and 68 Federally Qualified Tribes. She has worked with the regional office for over 20 years.