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Celebrating Pork: The Dubious Success of the Medicare Drug Benefit Health Insurance for the Elderly

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Author Info
Dean Baker

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Abstract

Projected costs for Medicare Part D have been revised downward, causing some analysts to claim that the program has proven itself a success. This report explores the factors behind the lower cost projections and reaches far different conclusions. It finds two main reasons: 1) a slowdown in the rate of growth in drug prices that preceded the introduction of the benefit; and 2) fewer people are expected to enroll in the program. The report recommends changes to the program that could save $30 billion a year.

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Publisher Info
Paper provided by Center for Economic and Policy Research (CEPR) in its series CEPR Reports and Issue Briefs with number 2007-08.

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Date of creation: Mar 2007
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Handle: RePEc:epo:papers:2007-08

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Find related papers by JEL classification:
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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This page was last updated on 2009-12-10.

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