Prescription Drug Insurance and Its Effect on Utilization and Health of the Elderly
AbstractThe Medicare Modernization Act was recently established, to provide limited drug coverage to the elderly. However, there is limited evidence on how drug coverage might affect health. The goal of this paper is to obtain “causal effects” of prescription drug coverage on drug use, use of other medical services and health of the elderly. We use fixed-effects analysis to control for unmeasured person-specific effects that may confound the relationships of interest. Results show prescription drug coverage, particularly public coverage, significantly increased the utilization of prescription drugs, but had no discernable effect on hospital admissions or health.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12848.
Date of creation: Jan 2007
Date of revision:
Note: AG HE
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Find related papers by JEL classification:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-28 (All new papers)
- NEP-HEA-2007-01-28 (Health Economics)
- NEP-IAS-2007-01-28 (Insurance Economics)
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- Lee A. Lillard & Jeannette Rogowski & Raynard Kington, 1999.
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"The Anatomy of Health Insurance,"
NBER Working Papers
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- Melissa Boyle, 2008. "Costs and Benefits of Elderly Prescription Drug Coverage: Evidence from Veterans’ Health Care," Working Papers 0803, College of the Holy Cross, Department of Economics.
- Boyd H. Gilman & Barbara Gage & Susan Haber & Sonja Hoover & Jyoti Aggarwal, 2007. "Impact of Drug Coverage on Medical Expenditures Among the Elderly," Mathematica Policy Research Reports 5638, Mathematica Policy Research.
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