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Research Shows Medicare Part D Crowds Out Private Insurance, Public Funds Cut Seniors' Costs

In 2003, the Medicare Modernization Act added a prescription drug benefit for senior citizens the much-debated and often-controversial Part D. Is Medicare Part D a good or bad program overall? It may not be possible to answer that question, since the drug benefit has positive as well as negative aspects. Economists Gary Engelhardt and Jonathan Gruber have put out an important new paper examining the effects of Part D in great detail. The Heritage Foundation’s Center for Policy Innovation distills their findings. ....

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