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Medicare Prescription Drug Coverage

Prescription Drug Benefits: Cost Management Issues For Medicare

Research Report

August 2000


An AARP Public Policy Institute analysis by Peter D. Fox of issues decision-makers would face in managing the cost and utilization of a prescription drug benefit under Medicare. Among the issues addressed by Dr. Fox of PDF Incorporated are:

  • Which drugs should be covered?
  • How broad should the pharmacy network be?
  • To what extent, and how, should beneficiaries be encouraged to obtain less expensive medications when appropriate?
  • How should prescription drug utilization be managed?

The analysis suggests that operational decisions associated with a Medicare drug benefit might best be made by an independent body or commission in order to insulate such decisions from political considerations. (33 pages)

Pub ID: 2000-09