Cutting Copays Act

The Cutting Copays Act would modify how Medicare Part D cost-sharing reductions (CSRs) are calculated for low-income individuals. It changes the maximum copay amounts for generic and certain multi-source drugs before plan year 2026, shifting to a more generous structure beginning in 2026 (including a zero copay for generics) and tying non-generic drug copays to a 2023 baseline with annual increases aligned to the consumer price index (CPI). In short, the bill is aimed at substantially reducing out-of-pocket costs for low-income Part D enrollees, especially for generic drugs, with a gradual transition that uses indexed, year-by-year adjustments. The bill does not alter all existing Part D rules; instead, it specifies alternative copay limits for low-income individuals under Section 1860D-14(a)(1)(D)(ii) and introduces a staged transition that begins before 2026 and continues thereafter, using a 2023 baseline and CPI-based increases for non-generic drugs.