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The Effects of Medicare Part D on Health Outcomes of Newly Covered Medicare Beneficiaries

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  • Jeffrey Diebold
Abstract
Objectives To estimate the impact of Medicare Part D on cost-related prescription nonadherence and health outcomes among the newly covered medicare beneficiaries. Method Difference-in-differences analyses of data from a balanced panel of Medicare beneficiaries observed in each wave of the Health and Retirement Study from 2000 to 2010 were carried out. The differences in the pre- and post-Part D changes in these outcomes are calculated for previously uncovered Part D enrollees and a comparison group of previously covered Medicare beneficiaries. Results The results from this analysis indicate that Part D reduced cost-related nonadherence rates among the newly covered by 7 percentage points and that this decline was sustained through 2010. Part D was also associated with a 5 percentage points increase in the likelihood that a newly covered enrollee reported to be in good or better health and a 4-percentage point decline in the likelihood of being diagnosed with high blood pressure. These improvements were also sustained through 2010 but were only evident among those newly covered beneficiaries who remained enrolled in a Part D plan through 2010. However, there is insufficient evidence to conclude that Part D improved the blood pressure of newly covered, hypertensive beneficiaries. Discussion Part D has had a sustained impact on cost-related nonadherence rates and the health status of newly covered beneficiaries. However, the change in health status is conditional on remaining enrolled in a Part D plan over time.

Suggested Citation

  • Jeffrey Diebold, 2018. "The Effects of Medicare Part D on Health Outcomes of Newly Covered Medicare Beneficiaries," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 73(5), pages 890-900.
  • Handle: RePEc:oup:geronb:v:73:y:2018:i:5:p:890-900.
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    File URL: http://hdl.handle.net/10.1093/geronb/gbw030
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    References listed on IDEAS

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    1. Robert Kaestner & Cuping Schiman & G. Caleb Alexander, 2019. "Effects of Prescription Drug Insurance on Hospitalization and Mortality: Evidence from Medicare Part D," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 86(3), pages 595-628, September.
    2. Darius Lakdawalla & Wesley Yin, 2009. "Insurer Bargaining and Negotiated Drug Prices in Medicare Part D," NBER Working Papers 15330, National Bureau of Economic Research, Inc.
    3. Robert Kaestner & Nasreen Khan, 2012. "Medicare Part D and Its Effect on the Use of Prescription Drugs and Use of Other Health Care Services of the Elderly," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(2), pages 253-279, March.
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    Cited by:

    1. Lee, Donghoon & Kim, SangJune & Dugan, Jerome A., 2024. "The effect of prescription drug insurance on the incidence of potentially inappropriate prescribing: evidence from Medicare Part D," LSE Research Online Documents on Economics 121189, London School of Economics and Political Science, LSE Library.
    2. Moulton, Stephanie & Rhodes, Alec & Haurin, Donald & Loibl, Cäzilia, 2022. "Managing the onset of a new disease in older age: Housing wealth, mortgage borrowing, and medication adherence," Social Science & Medicine, Elsevier, vol. 314(C).
    3. Donghoon Lee & SangJune Kim & Jerome A. Dugan, 2024. "The effect of prescription drug insurance on the incidence of potentially inappropriate prescribing: Evidence from Medicare Part D," Health Economics, John Wiley & Sons, Ltd., vol. 33(1), pages 137-152, January.

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