Tim KautzPolicy Report · 2009
Geographic Variation in Drug Prices and Spending in the Part D Program
MaCurdy, Thomas, Jonathan Gibbs, Tim Kautz, Thomas Deleire, and Margaret O'Brian-Strain
Baltimore, MD: Centers for Medicare and Medicaid Services
Summary
This report investigates the extent to which there is regional variation in drug prices in Medicare's Part D Program. We construct regional price indices for different drug classifications. We examine different percentiles of the price distribution across regions, distinguishing between best available prices and typical prices for each region. There is little evidence of regional price variation in either best available or typical prices. There is some evidence of regional variation in average per-capita drug expenditures.