Explosion in the medicine chest.

Area of Science:

• Health Policy
• Pharmaceutical Economics
• Public Health

Background:

• Debate on Medicare's coverage of outpatient drugs.
• Need for cost-effective drug benefit administration.
• Importance of ensuring optimal medical outcomes.

Purpose of the Study:

• To synthesize research on administering a Medicare outpatient drug benefit.
• To explore policy implications based on existing drug benefit programs.
• To inform the ongoing discussion regarding Medicare drug coverage.

Main Methods:

• Review and synthesis of multiple articles on drug benefit administration.
• Analysis of Health Care Financing Administration (HCFA) and state government experiences.
• Examination of drug utilization data across different beneficiary groups.

Main Results:

• Identified various models for administering an outpatient drug benefit.
• Highlighted policy challenges and considerations for Medicare drug coverage.
• Provided insights into drug utilization patterns among Medicare and Medicaid beneficiaries.

Conclusions:

• Medicare can potentially add outpatient drugs as a covered benefit.
• Effective administration requires learning from HCFA and state experiences.
• Policy development should consider cost-effectiveness and medical outcomes.