Medicare Part D Plans

Many on the left criticize Medicare Part D because it consists of private drug plans that negotiate directly with drug makers rather than a government-run plan with price controls. Writing in the New York Times Room for Debate opinion pages, Grace-Marie Turner reminds us that Medicare Part D plans were originally estimated to cost $111.2 billion by 2009.  Yet, the 2010 Medicare Trustees Cost Report put the actual cost in 2009 at $60.8 billion — 45 percent lower than the original estimates.

Comments (6)

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  1. Bruce says:

    Competition works.

  2. Ken says:

    Does anyone remember all the Democrats tearing up their AARP cards in protest over Part D? They claimed it was a give away to vested interests. But where are they now?

  3. Joe S. says:

    Ken, yes. I remember.

  4. Erik says:

    Part D costs have gone down due to the elimination/restrictions on brand drugs and overutilization of generic drugs which are cheaper but in some cases less effective.

  5. steve says:

    And all unfunded.

    Steve

  6. Linda Gorman says:

    Can someone name another government health program that had lower than estimated costs years after enactment?