Medicare Part D Costs
Executive Summary
The Congressional Budget Office estimates that net Medicare spending on Part D will total $593 bil. over 2004-2013, compared with its original projection of $552 bil. for the same period; neither figure accounts for expected savings to Medicaid and other federal programs. CBO attributes $17 bil. of the $41 bil. increase to changes related to the low-income subsidy and transitional drug assistance. The agency also says Part D plans will be less effective at controlling drug spending than previously assumed, due to regulatory decisions regarding formulary requirements. CBO's estimate follows controversy set off by HHS' latest cost projections (1"The Pink Sheet" Feb. 14, 2005, p. 25). Sen. Lindsey Graham (R-S.C.) has introduced legislation calling for presidential action if Part D costs exceed the original CBO estimate...