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Why is Medicare so Expensive?? Look at These Prices for Diabetes Drugs

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Rosenberg: If government administered plans produce such cost savings, what is the appeal of private plans?

Gellad: The appeal of having many private plans administer the drug benefit is that competition between them presumably will offer patients more choices and better prices, in a well functioning market . Many people would not accept a central government authority making decisions about drugs available to them.  It turns out, however, that all drugs are available to individuals receiving benefits through VA, it’s just that in some cases physicians have to make a good case for why they are needed.  I am not proposing Medicare turn into the VA, but the truth is that financial resources for Medicare are limited. Money spent in one place that is not needed cannot be spent in another. There can’t be a medical reason that so many more patients on Medicare need brand name drugs compared to those than at the VA.