McClellan touts lower projected cost of Medicare prescription drug benefit

Oct 16 2006

Mark McClellan, who left his position as CMS administrator this weekend, said he believes his greatest accomplishment during his tenure was improving quality of care in Medicare, CQ HealthBeat reports (Reichard, CQ HealthBeat, 10/13).

McClellan announced his resignation on Sept. 5, saying that he wants to spend more time with his family and that he probably will join a think tank or take a position in academia (Kaiser Daily Health Policy Report, 9/26). In a meeting with reporters on Friday, McClellan said, "If we want to get the best possible care for our beneficiaries at the lowest possible cost to them and the taxpayers, we've got to be more proactive in supporting quality care and paying for what we want." McClellan said he feels that implementing quality of care measures was a greater accomplishment than his role overseeing the start of the Medicare prescription drug benefit, adding, "What's more important for the program is ... moving away from a focus on just paying bills." He said the goal of the program should be "better-coordinated, prevention-oriented, personalized care at a lower overall cost" (CQ HealthBeat, 10/13). He added, "We have got to move in this kind of direction to have a sustainable, innovative, affordable health care system" (Lee, Washington Post, 10/14). McClellan will be joining the AEI-Brookings Joint Center for Regulatory Studies as a visiting senior fellow (AEI-Brookings release, 10/16).

Lower Costs

McClellan said the drug benefit is on track to cost about $30 billion this year, much less than the initial estimate of $43 billion. He said the projected 2007 cost of $48 billion likely will be revised downward as well. McClellan said the lower cost is the result of lower-than-expected premiums and enrollment and slowing growth in drug spending. About 60% of prescriptions filled under the drug benefit were for generic drugs, less than the national average of 52%, McClellan said. He added that he is pleased that independent surveys found that about 80% of beneficiaries are satisfied with their Medicare drug plans (Washington Post, 10/14).