Close up image of a caretaker helping older woman walk

Here’s one way to limit the growth of Medicare Part Ddrug prices:  Require drug makersto sell drugs to prescription drug plans for dual-eligible beneficiaries atprices similar to what Medicaid pays.

So says a study that appears in the January/February 2008issue of the journal Health Affairs. Dual-eligible beneficiaries are those whoreceive both Medicare and Medicaid benefits. Many such beneficiaries reside innursing homes.

Such a move would help to control Medicare spending and,at the same time, protect research and development incentives formanufacturers, according to researchers Richard G. Frank and Joseph P.Newhouse. Earlier this week, the Centers for Medicare & Medicaid Servicesreported that Medicare spending expanded by 18.7% to $401.3 billion in 2006, asprescription drug spending shifted to Medicare from Medicaid and privatecoverage.