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Drug Prices Under the Medicare Drug Discount Card Program

Please contact Rubén Hernández-Murillo for questions regarding the data and programs for this article. He can be reached at

In early 2004, the U.S. government initiated the Medicare Drug Discount Card Program (MDDCP), which allowed card subscribers to obtain discounts on prescription drugs. Pharmacy-level prices were posted on the program website weekly with the hope or promoting competition among card sponsors by facilitating consumer access to prices. A large panel of pharmacy-level price data collected from this website indicates that price dispersion across cards persisted throughout the program.

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