Study: Drug Insurance Reduces the Cost of Other Therapies

Results indicate that obtaining prescription drug insurance through Medicare Part D was associated with an 8% decrease in the number of hospital admissions, a 7% decrease in Medicare expenditures, and a 12% decrease in total resource use. Gaining prescription drug insurance through Medicare Part D was not significantly associated with mortality. (NBER)

Comments (12)

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  1. Max says:

    Since most people are familiar with their health condition, maintaining a Part D is economical and efficient.

  2. X-ray says:

    For those who have a job, they have to know whether or not the employer coverage works with the Medicare drug benefit (it often will not)?

  3. Thomas says:

    Numerous accounts of quality research show that Medicare Part D is a smashing success of a program. This shows it is more evident that the government shouldn’t change a good thing.

    • Matthew says:

      Here’s more about why Medicare Part D shouldn’t be touched:

      http://www.ncpathinktank.org/pub/ib140

    • Erik says:

      Part D is a unnecessary program that was created by G. Bush to secure senior votes during a tense election.

      These drugs were available under a Medicare Supplement plan. When the Part D mandate was passed the prescription drugs were stripped out of these plans and moved to Part D.

      It was a shell game.

  4. Barry O says:

    Medicare part D is one of the best sections of the healthcare industry in the United States. Since a long time back it was known that prevention was preferred over reaction. Medical prescribed drugs are a mechanism in which patients can prevent a minor disease and control them from developing into a life threatening condition. This program saves millions of lives, the government shouldn’t try to change it.

    • Jay says:

      Not to mention being cost-effective and self sufficient. You don’t get many government programs like that these days.

  5. Ultimate says:

    “Part D drug plans use a variety of techniques to control drug costs, including preferred-drug lists, tiered formularies, use of mail-order drug suppliers, negotiated prices with drug companies and drug distributors, and contracting with exclusive preferred pharmacy network providers.”
    That is why Plan D is so successful.

  6. healanyone says:

    Creditable Coverage.” This means that the drug benefit in an employer sponsored plan or individual plan must be actuarially equivalent to that of Part “D”.

    healanyone.com

  7. Floccina says:

    Wow people are cheap.