Drug Benefit Fueled Medicare Spending

Te Wall Street Journal ^ | 1/8/08 | JANE ZHANG

[imd102]

WASHINGTON -- Growth in U.S. health-care spending picked up slightly in 2006, but Medicare spending increased at its fastest rate in 25 years, fueled by the drug benefit added to the federal health-insurance program for the elderly, according to a government study.

The study, considered the most comprehensive tally of the nation's health-care spending, found that health spending totaled $2.1 trillion in 2006 -- or 16% of gross domestic product. That was up 6.7% from 2005, which experienced a growth rate of 6.5%.

SNIP

The report's authors found that the new drug benefit "caused major shifts in the sources of funds used to pay for drugs." Aaron Catlin and his colleagues at the Centers for Medicare and Medicaid Services wrote, "The public share of drug spending increased from 28% in 2005 to 34% in 2006, while the private share fell from 72% to 66%."

SNIP #2

Still, the drug benefit's $41 billion price tag was lower than Medicare officials initially estimated. That could attract the attention of the 2008 presidential hopefuls. Democrats, however, would be more likely to cite it as arguing for expanded government involvement in health care, while Republicans would be more likely to laud it as vindication of a market-driven approach.

[Jeff Chandler]

Read my lips: No New Liberal Republican Presidents.

[Sacajaweau]

There’s a damn cure for everything except the problem of writing too damn many prescriptions.

[ARE SOLE]

GW transferred billions in business health care obligations right on to the backs of taxpayers.

Regards

[sportutegrl]

I will vote for the first president to change the Medicare drug benefit to a map to the nearest Wal Mart and a list of $4 prescriptions available there.

[Lurker]

They needed a government study to tell us this?

Unreal...

L

[mysterio]

This is why we can never compromise and vote for the lesser of two evils again. Bush has been a major disappointment on fiscal conservatism.

[fightinJAG]

Well, duh.

[imd102]

Has anyone heard any of the current candidates speak to this issue? I’d be curious to see if they go along with Bush on this or if there has been any criticism.

[sheana]

My mother is on Medicare D. She hit the ‘donut hole’ after 4 mnths last yr. I took her to the doctor and had him change all her scrips to the generic $4 Target ones. Took the list with me so he would know exactly what to prescribe.
Took her to Target and got all her meds for $20. That was cheaper than the $100 she had been paying with her ‘insurance.
I can’t believe that more people haven’t done it.

[sportutegrl]

I have a employment provided health insurance with a $20 co pay for name brand and $10 for generic prescriptions. All both of the generics are available at Wal Mart for $4 each. Saves me $14/month.