5 ways the Inflation Reduction Act could change life for retirees

For the first time in history, Medicare will have the power to negotiate drug prices — but not all of them. The Inflation Reduction Act will allow haggling over a limited number of highly expensive medicines, and then expand that number over time. For example, negotiations will begin for 10 drugs covered by Medicare Part D in 2026, then 15 in 2027 and then 20 in 2029. Some Part B drugs will eventually be included as well.

This could lead to big savings for the program — $101.8 billion, by the Congressional Budget Office‘s estimate — which could trickle down to retirees in the form of lower Medicare premiums.