Analysis suggests Medicare Part B reimbursement encourages high drug prices
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Launch prices for new drugs have doubled since 2005, according to research from Duke University’s Fuqua School of Business.
The data links the high prices to a 2005 change in the way Medicare reimburses doctors and other providers for Part B medications, which are drugs and treatments delivered in outpatient settings, said David Ridley, a health economist and Fuqua strategy professor who co-authored the research published in The Review of Economics and Statistics.
[This article has been reproduced with permission from Duke University's Fuqua School of Business. This piece originally appeared on Duke Fuqua Insights]