Although the Medicare Part D program generally encourages plan sponsors to submit low bids, this paper explores rules relating to low-income beneficiaries that generate a different set of incentives for plans that serve those beneficiaries.

The federal government ran a budget deficit of $486 billion in fiscal year 2014, the Congressional Budget Office (CBO) estimates—$195 billion less than the shortfall recorded in fiscal year 2013, and the smallest deficit recorded since 2008.