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

Robert Kaestner, Cuping Schiman and G. Caleb Alexander

Journal of Risk & Insurance, 2019, vol. 86, issue 3, 595-628

Abstract: We used Medicare administrative data (2002–2009) and an instrumental variables design that exploits the natural experiment created by the implementation of Medicare Part D to estimate the effect of prescription drug coverage insurance on the use and costs of inpatient services. We find that gaining prescription drug insurance through Part D caused approximately a 4 percent decrease in hospital admission rate, a 2–5 percent decrease in Medicare inpatient payments per person, and a 10–15 percent decrease in inpatient charges. Among specific types of admissions, gaining insurance was associated with significant decreases in admissions for CHF and COPD.

Date: 2019
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https://doi.org/10.1111/jori.12229

Related works:
Working Paper: Effects of Prescription Drug Insurance on Hospitalization and Mortality: Evidence from Medicare Part D (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jrinsu:v:86:y:2019:i:3:p:595-628

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