Prescription Drug Insurance and Its Effect on Utilization and Health of the Elderly
The Medicare Modernization Act was recently established, to provide limited drug coverage to the elderly. However, there is limited evidence on how drug coverage might affect health. The goal of this paper is to obtain "causal effects" of prescription drug coverage on drug use, use of other medical services and health of the elderly. We use fixed-effects analysis to control for unmeasured person-specific effects that may confound the relationships of interest. Results show prescription drug coverage, particularly public coverage, significantly increased the utilization of prescription drugs, but had no discernable effect on hospital admissions or health.
The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
- Medicare was first established in 1965, providing near-universal coverage of hospital and physician services for seniors. However, it was...
N Khan, 2006. "HP4 PRESCRIPTION DRUG INSURANCE AND ITS EFFECT ON UTILIZATION AND HEALTH OF THE ELDERLY," Value in Health, vol 9(3), pages A4-A5.