Leavitt calls for Medicare change

Executive Summary

Medicare Parts A and B should more closely resemble Part D, structurally, to maintain a competitive edge as the system struggles to meet demands of an increasing generational gap, HHS Secretary Michael Leavitt said April 28 in a speech on the topic. "Medicare Part D ... provides a very good example of how you can use transparency and competition to drive change," Leavitt said. "It [has] also demonstrated that seniors can use an organized market place to drive quality up and cost down." The speech follows the March release of the Board of Trustees' annual report on Medicare and Social Security, which projects drug plans will continue to negotiate deeper rebates from drug manufacturers (1"The Pink Sheet," March 31, 2008, p. 24)