Wednesday, October 31, 2012

Competition in Health Care: Medicare Part D

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..."

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