Better use of medications can save money for Medicare by helping beneficiaries avoid some hospital and physician services, and growth in Part D activity is expected to shave $35 billion from Medicare’s expected spending of $5.6 trillion between 2011 and 2022, according to the Congressional Budget Office (CBO).
The savings bolster the political argument for supporting Part D expansion at a time when politicians and health care experts worry about slowing the growth of the mammoth federal budget deficit. The CBO’s proof of savings is new. Previously, the “CBO found insufficient evidence of an ‘offsetting’ effect of prescription drug use on spending for medical services. But recently, more analysis has been published that demonstrates a link between changes in prescription drug use and changes in the use of and spending for medical services.”
Part D becomes increasingly popular each year as more and more Medicare beneficiaries realize the advantages of having access to medications in a competitive marketplace. Enrollment grew 12 percent during 2012, according to a study by Avalere Health, a consulting firm. The program has grown each year since it began in 2006, and 35 million of the 49 million eligible Medicare beneficiaries are now enrolled in a Part D plan.
