- Drug Benefit Trends Vol 21 No 8
- Volume 21
- Issue 8
How Has Medicare Part D Affected Medical Spending?
The Medicare Prescription Drug Benefit (Part D) was initiated to help protect beneficiaries from increasing drug costs and to reduce the cost-related underuse of medications. A recent study by Zhang and associates1 provides noteworthy information about how Part D has affected prescription drug and other medical expenditures.
The Medicare Prescription Drug Benefit (Part D) was initiated to help protect beneficiaries from increasing drug costs and to reduce the cost-related underuse of medications. A recent study by Zhang and associates1 provides noteworthy information about how Part D has affected prescription drug and other medical expenditures.
They analyzed the spending for prescription drugs and other medical care 2 years before and 2 years after the implementation of Part D. The study included 4 groups of elderly benefi- ciaries: Medicare Advantage enrollees with stable, uncapped, employer-based drug coverage throughout the study period (no-cap group); those who had no previous drug coverage; and those who had previous limited benefits, with either a $150 or a $350 quarterly cap, before they were covered by Plan D in 2006.