As part of my ongoing project to chronicle the working of competition in health care, I note this latest article in the American Economic Review.
Medicare Part D is the prescription drug coverage program for senior citizens in the US. Those eligible choose a plan from competing (yes, competing!) insurers.
Here is the abstract of the article and a paragraph from the conclusion. I will emphasize this one sentence in particular: "Our results add to the accumulating evidence that Part D represents a successful implementation of a market-based approach to deliver a large-scale entitlement program..."