Working Paper: NBER ID: w16011
Authors: Robert Kaestner; Nasreen Khan
Abstract: We examine the effect of gaining prescription drug insurance as a result of Medicare Part D on use of prescription drugs, use of other medical services, and health for a nationally representative sample of Medicare beneficiaries. Given the heightened importance of prescription drugs for those with chronic illness, we provide separate estimates for those in poorer health. We find that gaining prescription drug insurance through Medicare Part D was associated with a 70% increase in the number of annual prescriptions, but that obtaining prescription drug insurance is not significantly related to use of other health care services or health, as measured by functional status and self-reported health. Among those in poorer health, we find that gaining prescription drug insurance was associated with a 60% increase in the number of annual prescriptions, and is not significantly related to use of other services or health.
Keywords: Medicare Part D; Prescription Drug Insurance; Health Care Services; Elderly Health
JEL Codes: I12; I18; J14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Gaining prescription drug insurance through Medicare Part D (I13) | Increase in the number of annual prescriptions for the general elderly population (J14) |
| Gaining prescription drug insurance through Medicare Part D (I13) | Increase in the number of annual prescriptions for those in poorer health (I14) |
| Gaining prescription drug insurance through Medicare Part D (I13) | Use of other health care services (I19) |
| Gaining prescription drug insurance through Medicare Part D (I13) | Health outcomes (I14) |