Transforming Health Care Through Evidence and Collaboration
Transforming Health Care Through Evidence and Collaboration

The Effect of Medicare Part D on Pharmaceutical Prices and Utilization—American Economic Review

Mark Duggan and Fiona Scott Morton have been awarded the 17th Annual Health Care Research Award for their paper "The Effect of Medicare Part D on Pharmaceutical Prices and Utilization" published in the American Economic Review in 2010. This study shows that private prescription drug plans were able to use tools such as formularies and price negotiation to extract lower prices for branded drugs in the first year of the Medicare Part D program and casts doubt on policies that rely on consumers bearing a greater portion of costs as a means to force competition and lower prices. The work has direct relevance to policy debates over how to encourage competition in the purchase of health care services.