American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Sinking, Swimming, or Learning to Swim in Medicare Part D
American Economic Review
vol. 102,
no. 6, October 2012
(pp. 2639–73)
Abstract
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 individual-specific 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. (JEL D14, G22, H51, I13, I18)Citation
Ketcham, Jonathan D., Claudio Lucarelli, Eugenio J. Miravete, and M. Christopher Roebuck. 2012. "Sinking, Swimming, or Learning to Swim in Medicare Part D." American Economic Review, 102 (6): 2639–73. DOI: 10.1257/aer.102.6.2639Additional Materials
JEL Classification
- D14 Personal Finance
- G22 Insurance; Insurance Companies
- H51 National Government Expenditures and Health
- I13 Health Insurance, Public and Private
- I18 Health: Government Policy; Regulation; Public Health