Medicare Part D and its Effect on the Use of Prescription Drugs, Use of Other Health Care Services and Health of the Elderly

39 Pages Posted: 4 Jun 2010 Last revised: 2 Apr 2021

See all articles by Robert Kaestner

Robert Kaestner

University of Chicago; National Bureau of Economic Research (NBER)

Nasreen Khan

University of New Mexico

Date Written: May 2010

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.

Suggested Citation

Kaestner, Robert and Khan, Nasreen, Medicare Part D and its Effect on the Use of Prescription Drugs, Use of Other Health Care Services and Health of the Elderly (May 2010). NBER Working Paper No. w16011, Available at SSRN: https://ssrn.com/abstract=1612606

Robert Kaestner (Contact Author)

University of Chicago ( email )

1155 East 60th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

5 Hanover Square 16th floor
New York, NY 10004
United States

Nasreen Khan

University of New Mexico ( email )

107 Humanitites Building
Albuquerque, NM 87131-1221
United States

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