Health Affairs, 23, no. 1 (2004): 103-106 doi: 10.1377/hlthaff.23.1.103 © 2004 by Project HOPE	New Online   Senate Health Reform Bill   Rewarding Providers   Public Option Policy Brief   Health Reform & Abortion   Delivery System Reform

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Medicare Challenge

PERSPECTIVE

Unique Issues Raised By Drug Benefit Design

In this Perspective on the preceding paper by Joseph Newhouse, I point out a number of features of the pharmaceutical industry that differentiate it from other health care sectors. These differences help explain why it has proved to be so very difficult to construct policies that simultaneously contain health care costs, provide patients with high-quality care, and generate continued incentives for innovation. I then summarize Newhouse’s preferred Medicare prescription drug benefit program and the issues it raises.

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