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Slashing incentives to prescribe expensive drugs

Currently doctors and hospitals get paid more money if they prescribe Medicare patients more expensive drugs.

It’s what’s called “misaligned incentives” and it’s helped drive Medicare Part B drug spending to almost double over the last decade to $18.5 billion dollars.

Yesterday federal health officials announced a proposed rule to realign those incentives, by encouraging doctors to prescribe more affordable – but equally effective meds. Sounds reasonable, right?