Toward a rational, value-based drug benefit for Medicare

Document Type

Journal Article

Publication Date

11-2007

Journal

Health Affairs

Volume

Volume 26, Issue 6

Inclusive Pages

1666-1673

Keywords

Drug Industry--economics; Drug Prescriptions--economics; Insurance, Pharmaceutical Services--legislation & jurisprudence; Medicare Part D--legislation & jurisprudence; Medication Therapy Management; Medicare

Abstract

A major challenge facing Congress is what changes, if any, to make to Medicare Part D. With the apparent failure of the Democrats' attempt to remove the prohibition on government intervention in drug price negotiations, the party's next steps are unclear. One suggested option is a plan administered by the Centers for Medicare and Medicaid Services (CMS), to compete with private plans and facilitate a transition to a more rational structure. We discuss issues surrounding the design of such a mechanism and how it might provide a transition toward a more rational and sustainable drug benefit in the longer term.

Peer Reviewed

1

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