About the Author

James C. Capretta

James C. Capretta

New Atlantis Contributing Editor James C. Capretta is an expert on health care and entitlement policy, with years of experience in both the executive and legislative branches of government. E-mail: jcapretta@aei.org.


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James C. Capretta’s Latest New Atlantis Articles

 Health Care with a Conscience” (Fall 2008) 

 Health Care 2008: A Political Primer” (Spring 2008) 

 The Clipboard of the Future” (Winter 2008)

 

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Text Patterns - by Alan JacobsFuturisms - Critiquing the project to reengineer humanity

Monday, April 21, 2008

Passing the Market Test 

The Medicare drug benefit

In the latest Weekly Standard, my EPPC colleague Pete Wehner and I have an article examining the success of the Medicare prescription drug benefit to date. As we point out:

Now in its third year, the drug benefit is working better than predicted. More than 1,800 private plans are competing for enrollment. More important, Medicare beneficiaries like the program. Recent independent surveys show 85 percent are satisfied with their coverage. And little wonder: In 2008, the average beneficiary premium is just $25 per month, well below the original estimate of $41.

The program's competitive design is holding down costs for the government as well. The Centers for Medicare and Medicaid Services announced earlier this year the new drug benefit's costs will be 40 percent--or $244 billion--less over ten years than originally projected. This is an unprecedented achievement in health care policy.

As we note in the article, the continued success of the drug benefit has important implications for the broader health care debate. Advocates for market-based reforms have long argued that the best way to improve the quality of services provided, and improve efficiency in health care too, is with public policies which promote strong price and quality competition. Now the drug benefit, even at this early stage, is beginning to demonstrate this argument has merit.

posted by James C. Capretta | 11:46 am
File As: Health Care