Discussion paper

DP8585 Sinking, Swimming, or Learning to Swim in Medicare Part D

Under Medicare Part D, senior citizens choose prescription drug insurance off red by numerous private insurers. We examine non-poor enrollees' actions in 2006 and 2007 using panel data. Our sample reduced overspending by $298 on average, with gains by 81% of them. The greatest improvements were by those who overspent most in 2006 and by those who switched plans. Decisions to switch depended on individuals' overspending in 2006 and on individual-specific effects of changes in their current plans. The oldest consumers and those initiating medications for Alzheimer's disease improved by more than average, suggesting that real-world institutions help overcome cognitive limitations.

£6.00
Citation

Miravete, E, J Ketcham, C Lucarelli and M Roebuck (2011), ‘DP8585 Sinking, Swimming, or Learning to Swim in Medicare Part D‘, CEPR Discussion Paper No. 8585. CEPR Press, Paris & London. https://cepr.org/publications/dp8585