Prescription Drug Procurement and the Federal Budget
This brief commissioned by the Foundation considers areas where Medicare faces limited opportunity for market-based competition and price negotiation to drive down drug spending. These areas include drug purchasing for low-income people enrolled in Part D plans who face minimal cost-sharing requirements, and purchasing certain unique drugs, such as biologicals, that have no therapeutic alternatives or competitors.
Authored by Richard G. Frank of Harvard University, the brief discusses policy options that could lower Medicare spending on prescription drugs in these circumstances.
Issue Brief (.pdf)