Should Medicare adopt the Veterans health administration formulary?

被引:15
作者
Frakt, Austin B. [1 ]
Pizer, Steven D. [1 ]
Feldman, Roger [2 ]
机构
[1] Boston Univ, Sch Publ Hlth, VA Boston Healthcare Syst, Boston, MA 02215 USA
[2] Univ Minnesota, Sch Publ Hlth, Minneapolis, MN USA
关键词
medicare; prescription drugs; demand elasticity; welfare analysis; formulary; PRESCRIPTION DRUG BENEFIT; DISCRETE-CHOICE MODELS; MARKET SHARE; PART-D; PRICES; INDUSTRY; SENIORS; IMPACT; COST;
D O I
10.1002/hec.1733
中图分类号
F [经济];
学科分类号
02 ;
摘要
Since January 2006 all Medicare beneficiaries have been eligible to obtain outpatient prescription drug coverage through private stand-alone drug plans (PDPs). We estimate a model of beneficiary demand for PDPs and use it to compute the loss of consumer surplus due to tightening PDP formularies to the level found in the Veterans Health Administration (VA). Under a generous assumption of cost savings attributed to increased bargaining leverage associated with exclusion of more drugs from formularies, we find the loss in consumer surplus to be smaller than the financial savings that could be shared between Medicare and beneficiaries. According to our estimates, Medicare beneficiaries could be compensated for the loss in consumer surplus associated with tighter PDP formularies with the savings generated by such formularies. Copyright (C) 2011 John Wiley & Sons, Ltd.
引用
收藏
页码:485 / 495
页数:11
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