The Inflation Reduction Act contained several provisions that aimed to reduce prescription drug spending for American retirees. Perhaps the most notable change is that beginning in 2025, the out-of-pocket maximum on prescription drugs will drop to just $2,000 for anyone on Medicare Part D.

Good news, right? Not so fast.

For the majority of retirees who don’t spend quite that much on prescriptions, there’s a trickle-down effect that (early data indicates) may have a negative impact – even before the law takes effect.