More than one way to save on Medicaid

In a just-published op-ed, American Enterprise Institute (AEI) economist Alex Brill sets forth two options to reduce health care costs in Illinois' Medicaid system. If enacted, these efforts would be a part of a broader reform effort which is necessary to avert dramatic cuts in the future.

Two options for reform:
1.    DON'T CAP, COMPLY: Instead of capping the number of prescriptions Illinois Medicaid patients can receive, as has been proposed, policy makers in the Land of Lincoln ought to focus on ensuring that patients take their prescriptions without missing doses to reduce hospitalization and lower health care costs.
2.    BUY THE RIGHT PILLS, REDUCE WASTE: Brill's own research has found that "all too frequently states reimburse for a version of a drug that is more costly than another product with the exact same active ingredient, dose, form and bottle size." Nationwide this practice wastes $329 million, $11 million in Illinois alone.
"Two options suggested here…can achieve measurable success at reducing aggregate health care costs. They are only first steps, of course, and more significant reforms will be required soon. In fact, without radical changes that recognize the need for greater patient responsibility along with access to quality care, costs will never be truly contained."

Alex Brill is an AEI economist who previously served as the policy director and top economist for the House Ways and Means Committee, and on the staff of the President's Council of Economic Advisers. He is available for interviews and can be reached at alex.brill@aei.org.

For help reaching any AEI scholars and for all other media requests, please contact Jesse Blumenthal at jesse.blumenthal@aei.org or 202.862.4870.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Alex
Brill
  • Alex Brill is a research fellow at the American Enterprise Institute (AEI), where he studies the impact of tax policy on the US economy as well as the fiscal, economic, and political consequences of tax, budget, health care, retirement security, and trade policies. He also works on health care reform, pharmaceutical spending and drug innovation, and unemployment insurance reform. Brill is the author of a pro-growth proposal to reduce the corporate tax rate to 25 percent, and “The Real Tax Burden: More than Dollars and Cents” (2011), coauthored with Alan D. Viard. He has testified numerous times before Congress on tax policy, labor markets and unemployment insurance, Social Security reform, fiscal stimulus, the manufacturing sector, and biologic drug competition.

    Before joining AEI, Brill served as the policy director and chief economist of the House Ways and Means Committee. Previously, he served on the staff of the White House Council of Economic Advisers. He has also served on the staff of the President's Fiscal Commission (Simpson-Bowles) and the Republican Platform Committee (2008).

    Brill has an M.A. in mathematical finance from Boston University and a B.A. in economics from Tufts University.

  • Phone: 202-862-5931
    Email: alex.brill@aei.org
  • Assistant Info

    Name: Brittany Pineros
    Phone: 202-862-5926
    Email: brittany.pineros@aei.org

What's new on AEI

image Recovering from tax time blues
image 10 welfare reform lessons
image Let HHS nominee Sylvia Burwell explain Obamacare lie
image Why bold ideas backfire in politics
AEI on Facebook
Events Calendar
  • 14
    MON
  • 15
    TUE
  • 16
    WED
  • 17
    THU
  • 18
    FRI
Wednesday, April 16, 2014 | 10:00 a.m. – 11:00 a.m.
Calling treason by its name: A conversation with Liam Fox

Join us at AEI as the Right Honorable Liam Fox sits down with Marc Thiessen to discuss and debate whether America’s intelligence agencies have infringed on the personal privacy of US citizens.

Event Registration is Closed
Thursday, April 17, 2014 | 4:00 p.m. – 5:00 p.m.
The curmudgeon's guide to getting ahead

How can young people succeed in workplaces dominated by curmudgeons who are judging their every move? At this AEI book event, bestselling author and social scientist Charles Murray will offer indispensable advice for navigating the workplace, getting ahead, and living a fulfilling life.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.