Posted on November 12, 2010 13:06
Categories: Medicare | State and Local
Topics: Cost-effectiveness | Health Care Reform | Medicare | Prescription Drugs | Spending
A CBO study examining the impact of generic drug utilization on Medicare Prescription Drug Program (Part D) found that the use of generics saved the program $33 billion in 2007. The CBO found that, without generic drugs, total Part D costs would have been 55 percent higher than actual 2007 costs.
From the report:
In 2006, Medicare began offering outpatient prescription drug benefits to senior citizens and people with disabilities in a program called Part D. Unlike other Medicare benefits covered under the traditional fee-forservice program—in which providers are paid an administratively determined price for each covered service (or bundle of services) they provide—prices in Part D are not set by the government. Instead, private plans deliver the drug benefit and negotiate their own drug prices while competing with each other for enrollees.
Full Report: Effects of Using Generic Drugs on Medicare's Prescription Drug Spending (PDF | 860 KB) 
Congressional Budget Office. (2010). Effects of Using Generic Drugs on Medicare's Prescription Drug Spending.
E-mail to Friend |
Print |
Permalink |
Post RSS
