Describe the U.S. Medicare Modernization Act of 2003 as providing a clear example of why cost-benefit analysis and cost-effectiveness analysis becomes relevant to drug decision-making.
The Medicare Prescription Drug Improvement and Modernization Act of 2003 added the much needed prescription drug and preventive health care benefits to the Medicare program. However, because of the cost that such benefits brought to Medicare, there was a need to establish clear frameworks that would balance effectiveness, costs and benefits of providing these coverages as it set the parameters on which medication to cover. The priorities for prescription coverage as well as for preventive care are being set by using cost-benefit analysis and cost-effectiveness analysis. For example, under this Act, the Agency for Healthcare Research and Quality (2006) conducted a systematic reviews and ...
The solution includes a description of the US. Medicare Modernization Act of 2003 and discussion on how the Act established the framework to decide drug coverage by Medicare.