What key provision regarding drug pricing will begin in 2026 as set by the Inflation Reduction Act?

The key provision regarding drug pricing that will begin in 2026 as set by the Inflation Reduction Act is Medicare's ability to negotiate with drug manufacturers. This ability allows Medicare to directly negotiate prices for certain high-cost medications, which is a significant shift in the way the government handles drug pricing. By enabling these negotiations, the purpose is to drive down costs for beneficiaries, ultimately making medications more affordable for seniors and other Medicare recipients.

This provision is significant because it addresses the longstanding issue of high prescription drug prices in the U.S., which has been a source of public concern and legislative efforts for many years. The negotiation process is intended to leverage the purchasing power of Medicare as one of the largest buyers of prescription drugs, ideally leading to lower prices for patients.

This approach contrasts with other options that discuss free prescriptions, increased prices, or expansion of covered drugs, which do not accurately represent the core aim of the Inflation Reduction Act in relation to drug pricing for Medicare recipients.