The Burden of Prescription Drug Costs on Medicare Beneficiaries: Scope of the Problem and Options to Alleviate It
University of Maryland, Baltimore (UMAB)
5/1/99 - 8/31/00
Dennis G. Shea, Professor of Health Policy and Administration
Through analysis of 1992-97 data from the Medicare Current Beneficiary Survey, a nationally representative longitudinal survey of elderly and the disabled beneficiaries conducted for the Health Care Financing Administration, this project identified trends in prescription drug coverage, utilization, and costs within the Medicare population. These trends were analyzed by economic, demographic, and health characteristics, including household income, educational level, age, gender, race, urban/rural location, self-reported health status, incidence of chronic disease, limitations in activities of daily living, and number of hospitalizations. The project determined the proportion of total prescritpion drug costs borne by beneficiaries and the proportion paid by other sources. The following broad alternatives were studied: a prescription drug benefit for all Medicare beneficiaries; a benefit for low-income elderly beneficiaries only, through either Medicare or Medicaid; coverage through Medicare+Choice managed care plans; and coverage through medigap supplemental insurance policies. For each option, the project looked at varying deductible levels, coinsurance rates, and benefit limits in determining the impact on Medicare program costs and beneficiary out-of-pocket expenses.
Related Publications
Stuart, B., Briesacher, B.A., Shea, D.G., Cooper, B., Baysac, F.S., Limcangco, M.R. (2005) Riding the rollercoaster: the ups and downs in out-of-pocket spending under the standard medicare drug benefit. Health Affairs, Jul-Aug:24(4):1022-31.
Stuart, B., D.G. Shea and B. Briesacher (2001). "Dynamics in Drug Coverage of Medicare Beneficiaries: Finders, Losers, Switchers." Health Affairs. 20(2):86-99. |Abstract|