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The Part D Bubble: Why Everyone Wants to be a PDP

This article was originally published in RPM Report

Executive Summary

There will be even more companies playing in the stand-alone drug insurance market in 2007. The new entrants are motivated more by fear than enthusaism. Still, the rush to get in is the strongest indication yet that Part D is here to stay.

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Price negotiation has stalled, but the Democratic Congress still wants to put its mark on Medicare Part D. There are plenty of levers to pull that could subtly but profoundly reshape the evolution of this critical new pharma market. One example: cracking down on marketing "abuses" by private Medicare plans.

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Medicare beneficiaries stuck with their Part D plans heading into 2007. That gives insurers more leverage in price negotiations with big pharma. It also means Part D may be more likely to stick around despite critics in the Democratic Congress.

Making Part D Stick: Lessons From the First Year of Medicare Rx

Medicare beneficiaries stuck with their Part D plans heading into 2007. That gives insurers more leverage in price negotiations with big pharma. It also means Part D may be more likely to stick around despite critics in the Democratic Congress.

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