As the new year dawned, there have been several changes in medical laws in the country. Any change in such laws is bound to affect Medicare beneficiaries. Naturally, every individual with Medicare wonders how new laws will impact them. Much to their delight, there has been a notable decrease in the Medicare drug cost cap with minimum wage increases. Besides, abortion rights have been expanded and there have been some changes across various states across the U.S.
Medicare Drug Cost Cap on Out-of-Pocket Costs
In a surprise move, the government has put a ceiling on the out-of-pocket drug costs. Now, people with Medicare will have to pay a maximum of $2000 out of their pockets on an annual basis (Iyer, 2025). To have a Medicare drug cost cap is in accordance with the Inflation Reduction Act provisions. This limit applies to prescription drug costs that patients get via mail orders or buy at pharmacies. Medicare Part D covers the costs of these prescription drugs for Medicare enrollees.
This law is significant because there was no limit on out-of-pocket costs for drugs before the passage of the ‘Inflation Reduction Act.’ So, Medicare enrollees can breathe a sigh of relief because of this cap. It means most of their drugs may be covered under Medicare Part D. Besides this welcome change, there has also been a notable hike in minimum wages.
Increase in Minimum Wages
A minimum wage hike is another significant new law for the year 2025. Although this law is not universal, most states have implemented this law. At present, 21 states have increased the minimum wage as per the ‘National Employment Law Project.’
Here’s is the list of states in which wage hikes took effect:
- Alaska
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Illinois
- Maine
- Michigan
- Minnesota
- Missouri
- Montana
- Nebraska
- New Jersey
- New York
- Ohio
- Rhode Island
- South Dakota
- Vermont
- Virginia
- Washington
With this new increase taking effect, Washington will continue to have the highest minimum wage standing at $16.66. Other states have also witnessed significant hikes in minimum wages. As far as a city is concerned, Washington DC has the highest minimum wage standing at $17.05 (Iyer, 2025).
Other Notable New Laws
Along with changes in Medicare drug cost cap law and minimum wage hikes, other significant new laws include the increase in abortion rights, clean energy tax credits, and gender-affirming care laws.
Ban on Gender-Affirming Surgical Process in New Hampshire
The New Hampshire state government has put a ban on gender-affirming surgical care for minors. Even though children rarely go through such a surgical process, these are now completely banned.
Expansion of Abortion Rights in New York
The New York government has amended the state constitution to expand abortion rights and protections. In the state’s constitution, the equal protection clause notes that no one can deny someone rights due to “pregnancy, pregnancy outcomes, and reproductive healthcare and autonomy” (Iyer, 2025).
Considerable Clean Energy Tax Credits
One of the provisions of the ‘Inflation Reduction Act’ is now expanding clean electricity tax credits. These tax credits are helpful for people and businesses to produce and invest in clean and green energy. This is to ensure pollution is decreased so that planet-warming can be addressed. These tax credits apply to any type of energy that does not contain a greenhouse gas. These types include solar, geothermal, tidal, and hydropower.
In short, there have been significant new laws and modifications that are beneficial for Medicare enrollees, the general public, and the overall environment. Visit Benefits by State for more insights.
Source:
Kaanita Iyer, ‘From minimum wage increase to Medicare drug costs cap, these new laws are now in effect,’ CNN, 2025.
