Medicare Part D reforms: Who wins and who loses?

Joseph Antos, Kirsten Axelsen and Sara Rogers
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Joseph Antos: American Enterprise Institute

AEI Economic Perspectives, 2020

Abstract: The Department of Health and Human Services recently finalized a regulation requiring drug manufacturers to offer rebates directly to consumers rather than paying rebates to insurers providing benefits under Medicare Part D. Both the current and incoming administrations support tying Medicare payments for drugs facing limited competition to prices paid in other developed countries. Such policies are likely to fall short in slowing cost growth and will do little to ease the financial burden faced by many Medicare beneficiaries with the greatest health needs. A more fundamental restructuring of Part D's subsidies would provide insurance protection that is now missing from the program, eliminate incentives that promote higher prices for the most expensive drugs, and reinvigorate price competition in the market.

Keywords: AEI Economic Perspectives; Drug Pricing; Medicare; Medicare Part D (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2020
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