Question

When the Medicare prescription drug benefit was under legislative consideration, some suggested that the program should require individuals to decide about whether to accept the benefit when they enter the Medicare system, and to stick to that decision permanently. That is, individuals either accept the prescription benefit and begin paying premiums as soon as they become eligible, or they can never enter the program. Explain the efficiency rationale behind this proposal.


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  • CreatedMarch 25, 2015
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