Part D Is Part of the Solution

Part D Is Part of the Solution

02.15.13 | By Matt Bennett

In his State of the Union address, President Obama highlighted the importance of research and development, declaring that this is "not the time to gut these job-creating investments in science and innovation." As one of the most R&D-intensive sectors in the entire economy, we at PhRMA believe that advancing science and discovery must be a foundation of our economy and health care system.

Yet the President is undermining his own goal in his indirect reference to imposing government price controls on Medicare Part D, which provides high-quality health care to seniors and persons with disabilities. Government price controls would undermine Part D's proven competition-based approach and increase costs, while also resulting in reduced choices for seniors. These proposals would also negatively impact jobs and R&D investment initiatives that the President claims to want to protect and foster. As a result of its ability to prevent chronic disease and reduce ancillary health care spending, Part D is helping to make Medicare more fiscally sound and total 10-year spending is currently 45% below budget projections.

Going forward, the focus should be on how to build upon a program that's working well, not gut it unnecessarily. Part D is part of the solution, not a program to be mischaracterized and undermined.

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