Medicare Part D and the Financial Protection of the Elderly
AbstractWe examine the impact of the expansion of public prescription prescription-drug insurance coverage from Medicare Part D has had on the elderly and find evidence of substantial crowd-out. Using detailed data from the 2002-6 waves of the Medical Expenditure Panel Survey (MEPS), we estimate that the extension of Part D benefits resulted in 75% crowd-out of prescription drug insurance coverage and 33%-50% crowd-out of prescription drug expenditures of those 65 and older. Part D is associated with relatively small reductions in out-of-pocket spending. This suggests that the welfare gain from protecting the elderly from out-of-pocket spending risk through Part D has been small.
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Bibliographic InfoPaper provided by Center for Retirement Research in its series Working Papers, Center for Retirement Research at Boston College with number wp2009-24.
Length: 48 pages
Date of creation: Oct 2009
Date of revision: Oct 2009
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This paper has been announced in the following NEP Reports:
- NEP-AGE-2010-02-05 (Economics of Ageing)
- NEP-ALL-2010-02-05 (All new papers)
- NEP-HEA-2010-02-05 (Health Economics)
- NEP-IAS-2010-02-05 (Insurance Economics)
- NEP-LTV-2010-02-05 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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