NATIONAL BUREAU OF ECONOMIC RESEARCH: The Impact of Medicare Part D on Pharmaceutical R&D
“The Impact of Medicare Part D on Pharmaceutical R&D,” by Margaret E. Blume-Kohout and Neeraj Sood (w13857, March 2008, .pdf format, 17p.).
Abstract:
Recent evidence suggests that Medicare Part D has increased prescription drug use among the elderly, and earlier studies have indicated that increasing market size induces pharmaceutical innovation. This paper assesses the impact of Medicare Part D on pharmaceutical research and development (R&D), using time-series data on the number of drugs in preclinical and clinical development by therapeutic class. We demonstrate that the passage of Medicare Part D was associated with significant increases in pharmaceutical R&D, especially for classes with high elderly market share.
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