Weekly Checkup No. 007: More Messing With Medicare
Medicare spending is unsustainable. The entitlement carries a $550 billion price tag that is expected to double around 2020. Many point to rising healthcare costs and finger prescription drug spending as a culprit. However, the growth rates of both Medicare Part B and Part D drug spending have been much slower than other areas within Medicare. Pharmaceuticals covered by Part B, the largest category of which is cancer drugs, provide life-saving benefits to beneficiaries. Many of the other cost-drivers within the program, such as repetitive and unnecessary care and fraudulent billing, provide no such benefit. However, drug reductions are easier than cutting down on overutilization or fraudulent practices, and therefore the Joint Select Committee on Deficit Reduction (the “Super Committee”) is looking at proposals to cut drug spending.
