Sinking, swimming, or learning to swim in Medicare Part D

Ketcham, Jonathan D., Lucarelli, Claudio, Miravete, Eugenio J. and Roebuck, M. Christopher (2012) Sinking, swimming, or learning to swim in Medicare Part D. American Economic Review, 102 (6). pp. 2639-2673. ISSN 0002-8282

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Under Medicare Part D, senior citizens choose prescription drug insurance offered by numerous private insurers. We examine nonpoor enrollees' actions in 2006 and 2007 using panel data. Our sample reduced overspending by $298 on average, with gains by 81 percent of them. The greatest improvements were by those who overspent most in 2006 and by those who switched plans. Decisions to switch depended on individuals' overspending in 2006 and on individualspecific effects of changes in their current plans. The oldest consumers and those initiating medications for Alzheimer's disease improved by more than average, suggesting that real-world institutions help overcome cognitive limitations.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > School of Economics
UEA Research Groups: Faculty of Social Sciences > Research Centres > Centre for Competition Policy
Faculty of Social Sciences > Research Groups > Industrial Economics
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Depositing User: Pure Connector
Date Deposited: 22 Nov 2013 14:25
Last Modified: 17 May 2023 00:56
DOI: 10.1257/aer.102.6.2639

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