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VOLUME 53 | NUMBER 6 | DECEMBER 2018


The Case for Restructuring the Medicare Prescription Drug Benefit

Implemented a dozen years ago, the Medicare's prescription drug benefit (Part D) has outgrown its initial design and is in need of restructuring. Created as a public–private partnership, clear signs have emerged that changes in the market and private firms’ responses to incentives in the Part D reinsurance program act to inefficiently increase government expenditures. However, a few reforms could shrink this source of waste while protecting and supporting aspects of the program that benefit enrollees.

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