State government Medicaid programs provide medical insurance to poor and disabled people. A news article described a

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State government Medicaid programs provide medical insurance to poor and disabled people. A news article described a new prescription drug that costs as much as “$94,000 for one 12-week treatment regimen” to treat hepatitis C, a liver disease. Several states restricted access to the new drug under their Medicaid programs to patients who are most acutely ill (stage 3 or stage 4) with hepatitis C. State Medicaid programs are paid for, in part, out of state budgets. What trade-offs do state governments face when new prescription drugs are introduced with much higher prices than existing drugs? Do you agree with states providing expensive new drugs only to the patients who are most ill from a disease? Briefly explain.

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Essentials Of Economics

ISBN: 9780134797731

6th Edition

Authors: R. Glenn Hubbard, Anthony Patrick O brien

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