Cost Shifting Debt Reduction to America’s Seniors
The United States faces a daunting budgetary outlook. To avert an impending debt crisis, policymakers must tackle the unsustainble growth in entitlments in general, and Medicare spending in particular. Imposing mandatory prescription drug rebates in Medicare Part D has been proposed as a solution. In this report, beneficiary data is used to evaluate the impact of introducing Medicaid-style rebates into the Medicare Part D program. Despite any cosmetic appeal, such rebates would dramatically raise, not lower, the premiums paid by America’s seniors and seriously undermine proven success in harnessing competition in entitlement programs.
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