Sentences to ponder

Overall, a $1 increase in prescription drug spending is associated with a $2.06 reduction in Medicare spending.

Here is the paper.  I’m all for the view that the Bush Administration has been fiscally irresponsible, but I never thought the prescription drug bill was the ideal target.  If there is one category Medicare should be supporting, it is prescription drugs.

On a related note, Robin Hanson believes that half of all medical care spending is a waste (do read the whole thing).  I’m not sure what mechanism will get rid of the bad half, but Robin’s claim deserves to be taken very seriously.


Comments for this post are closed