Effects of Prescription Drug Insurance on Hospitalization and Mortality: Evidence from Medicare Part D

42 Pages Posted: 3 Mar 2014

See all articles by Robert Kaestner

Robert Kaestner

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

Cuiping Long

University of Illinois at Chicago

G. Alexander

Johns Hopkins University - Department of Environmental Health Sciences and Epidemiology; Johns Hopkins University - Department of Medicine; Monument Analytics

Multiple version iconThere are 2 versions of this paper

Date Written: February 2014

Abstract

We examine whether obtaining prescription drug insurance through the Medicare Part D program affected hospital admissions, expenditures associated with those admissions, and mortality. We use a large, geographically diverse sample of Medicare beneficiaries and exploit the natural experiment of Medicare Part D to obtain estimates of the effect of prescription drug insurance on hospitalizations and mortality. Results indicate that obtaining prescription drug insurance through Medicare Part D was associated with an 8% decrease in the number of hospital admissions, a 7% decrease in Medicare expenditures, and a 12% decrease in total resource use. Gaining prescription drug insurance through Medicare Part D was not significantly associated with mortality.

Suggested Citation

Kaestner, Robert and Long, Cuiping and Alexander, G. Caleb, Effects of Prescription Drug Insurance on Hospitalization and Mortality: Evidence from Medicare Part D (February 2014). NBER Working Paper No. w19948, Available at SSRN: https://ssrn.com/abstract=2403672

Robert Kaestner (Contact Author)

University of Chicago ( email )

1155 East 60th Street
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National Bureau of Economic Research (NBER)

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Cuiping Long

University of Illinois at Chicago ( email )

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Chicago, IL 60607
United States

G. Caleb Alexander

Johns Hopkins University - Department of Environmental Health Sciences and Epidemiology ( email )

Baltimore, MD 21205
United States

Johns Hopkins University - Department of Medicine ( email )

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Baltimore, MD 21205-2196
United States

Monument Analytics ( email )

Baltimore, MD
United States

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