National Academy of Medicine

Benefit Design Should Reflect Value

By Leonard D. Schaeffer, Dana Goldman
January 27, 2012 | Commentary

In 1965, when Medicare was enacted, spending for prescription drugs was less than $4 billion—so low that no one thought to include a drug benefit as part of Medicare. By 2003, the cost and importance of drug therapy was so high that Medicare Part D was enacted.

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Disclaimer: The views expressed in this paper are those of the authors and not necessarily of the authors’ organizations, the National Academy of Medicine (NAM), or the National Academies of Sciences, Engineering, and Medicine (the National Academies). The paper is intended to help inform and stimulate discussion. It is not a report of the NAM or the National Academies. Copyright by the National Academy of Sciences. All rights reserved.