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First rigorous analysis defines impact of Medicare Part D
Date:1/8/2008

D, with "near elderly" control subjects aged 60-63, who were not yet eligible for the benefit. The data were adjusted for individual characteristics, socio-economics based on the subjects' residential zip codes, and secular trends in drug consumption.

They found that the program saved people who enrolled before the May 15, 2006, deadline about $6 a month and gave them, on average, an extra three to four days worth of one medicine per month. After the enrollment deadline, average savings among all eligible seniors in the study increased to about $9 a month and 14 extra days of medicine per month.

Although their sample may not be nationally representative of all beneficiaries, "our report represents one of the first analyses of the impact of Part D," said co-author Wesley Yin, PhD, an assistant professor in the Harris School of Public Policy at the University of Chicago and a Robert Wood Johnson Foundation Scholar at Harvard. "It reflects the experiences of millions of Americans accounting for approximately 15 percent the market share in the United States."

Furthermore, this study differentiated between the period when subjects could enroll without penalty and enrollment in Part D plans was increasing, and the subsequent period when enrollment was stable. Analysis from this stable period, the authors said, better represents the steady-state impact of Part D on utilization and expenditures.

The authors also found that patients who enrolled early in the Part D program had higher rates of utilization and out-of-pocket costs prior to the Part D period and stood to benefit most from enrollment.

They conclude that Medicare Part D has, indeed, led to savings and increases in prescription drug use by older people. "More research is needed to see whether these effects have any influence on peoples health," Alexander said.


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Contact: John Easton
john.easton@uchospitals.edu
773-702-6241
University of Chicago Medical Center
Source:Eurekalert

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