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How Medicare Could Get Better Prices for Prescription Drugs

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Topics: Health Care Reform | Medicare | Prescription Drugs | Rates/Reimbursement

This article published on July 30 examines possible mechanisms to lower drug prices through the Medicare Prescription Drug Benefit program (Part D) if health care reform lifts the “noninterference” provision that prevents the government from negotiating drug prices for Part D.  The article examines mandatory rebates, value-based pricing, expansion of generic and therapeutically equivalent substitution, increased formulary diversity, importation, and limited anti-trust waivers.

Outterson, Kevin & Kesselheim, Aaron S (2009). How Medicare could get better prices on prescription drugs. Health Affairs, 28(5): w832-w841. doi: 10.1377/hlthaff.28.5.w832. http://content.healthaffairs.org/cgi/content/short/hlthaff.28.5.w832exit disclaimer small icon

Authors: Kevin Outterson, Aaron S. Kesselheim


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