(CNN) - Medicare beneficiaries who take pricey medications will get a bigger break this year.

The $2,000 annual cap on out-of-pocket costs for drugs from the pharmacy or through mail order went into effect on Jan. 1.

An interim ceiling of about $3,500 was in place for 2024.

The limit is one of the 2022 Inflation Reduction Act’s provisions to lower prescription drug prices for Medicare enrollees.

Before the law, there was no cap.

The AARP estimated more than 3 million enrollees who do not receive Medicare’s low-income subsidy should benefit from the $2,000 cap.

Other Inflation Reduction Act provisions include:

• $35 monthly cap on insulin prescriptions
• More vaccines at no cost
• Empowering Medicare to negotiate the prices of certain medications
• Drug makers will be required to pay a rebate to Medicare if they hike prices faster than inflation.

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