New Medicare Drug Plans Fail to Provide Meaningful Drug Price Discounts in the San Francisco Bay Area

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14 pages
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Brief Executive Summary
The Special Investigations Division of the House Committee on Government Reform examines a new prescription drug benefit being offered through the Medicare Part D during the Bush Administration in the San Francisco Bay Area. The analysis compares drug prices offered by ten leading Medicare drug plans with four benchmarks: federal government-negotiated prices, drug prices in Canada, prices, and Costco prices. The report concludes that the Medicare drug benefit has not succeeded in reducing drug prices. On average, the drug prices offered by the Medicare drug plans are over 75% higher than federal government-negotiated prices, over 60% higher than prices in Canada, over 5% higher than prices, and almost 2% higher than Costco prices.
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Related Hearings
House Committee on Ways and Means, hearing on "Negotiating Lower Prices for America\342\200\231s Seniors," 108th Cong., (2003, December 11)
Senate Committee on Finance, hearing on "Implementing the Medicare Prescription Drug Benefit and Medicare Advantage Program: Perspectives on the Proposed Rules," 108th Cong., S.Hrg. 108-767, (2004, September 14)
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