Patient Experiences in Selecting a Medicare Part D Prescription Drug Plan

Introduction: Medicare beneficiaries often report that the process of choosing a prescription drug plan is frustrating and confusing and many do not enroll in the plan that covers their drugs at the lowest cost. Methods: We conducted 4 focus groups to understand beneficiaries’ experiences in selecting a drug plan to identify what resources and factors were most important to them. Participants were patients served by a multispecialty delivery system and were primarily affluent and Caucasian. Results: While low cost was essential to many, other characteristics like having the same plan as a partner, company reputation, convenience, and anticipation of possible future health problems were sometimes more important. Although some used resources including insurance brokers, counselors, and websites beyond Medicare.gov , many expressed a desire for greater assistance with and greater simplicity in the choice process. Conclusion: Although older adults would likely benefit from greater assistance in choosing Medicare Part D prescription drug plans, more research is necessary to understand how to help with decision-making in this context.

Download Full-text

Choice Inconsistencies among the Elderly: Evidence from Plan Choice in the Medicare Part D Program

The American Economic Review ◽

10.1257/aer.101.4.1180 ◽

2011 ◽

Vol 101 (4) ◽

pp. 1180-1210 ◽

Cited By ~ 202

Author(s):

Jason Abaluck ◽

Jonathan Gruber

Keyword(s):

Prescription Drug ◽

No Value ◽

Medicare Part D ◽

The Elderly ◽

Medicare Part ◽

Part D ◽

Plan Choice ◽

Choice Sets ◽

Prescription Drug Plan ◽

Financial Characteristics

We evaluate the choices of elders across their insurance options under the Medicare Part D Prescription Drug plan, using a unique dataset of prescription drug claims matched to information on the characteristics of choice sets. We document that elders place much more weight on plan premiums than on expected out-of-pocket costs; value plan financial characteristics beyond any impacts on their own financial expenses or risk; and place almost no value on variance-reducing aspects of plans. Partial equilibrium welfare analysis implies that welfare would have been 27 percent higher if patients had all chosen rationally. (JEL D12, I11, J14)

Download Full-text

The effect of Medicare Part D on prescription drug composition and demand

Journal of Economic Studies ◽

10.1108/jes-08-2013-0109 ◽

2015 ◽

Vol 42 (2) ◽

pp. 170-185 ◽

Cited By ~ 4

Author(s):

David Zimmer

Keyword(s):

Prescription Drug ◽

Medicare Part D ◽

Medicare Part ◽

Part D ◽

Content Type ◽

The Us ◽

Upper Respiratory ◽

Nationally Representative ◽

The Impact ◽

Shed Light

Purpose – The US Medicare Modernization Act of 2003 introduced optional prescription drug coverage, beginning in 2006, widely known as Medicare Part D. This paper uses up-to-date nationally representative survey data to investigate the impact of Part D not only on drug spending and consumption, but also on the composition of drug consumption. The paper aims to discuss these issues. Design/methodology/approach – Specifically, the paper investigates whether Part D impacted the number of therapeutic classes for which drugs were prescribed, and also whether Part D lead to increased usage of drugs for specific medical conditions that typically receive drug-intensive therapies. Findings – In addition to confirming findings from previous studies, this paper shows that Part D increased the number of therapeutic classes to which seniors receive drugs by approximately four classes. Part D also lead to increased usage of drugs used to treat upper respiratory disease, hypertension, and diabetes. Originality/value – While mostly concurring with previous studies on the spending impacts of Part D, this paper is the first to shed light on other impacts of Part D, specifically with respect to its impact on therapeutic classes for which drugs are prescribed.

Download Full-text