TY - JOUR
T1 - Sinking, swimming, or learning to swim in Medicare Part D
AU - Ketcham, Jonathan D.
AU - Lucarelli, Claudio
AU - Miravete, Eugenio J.
AU - Roebuck, M. Christopher
PY - 2012/10/1
Y1 - 2012/10/1
N2 - 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 individualspecific 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.
AB - 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 individualspecific 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.
UR - http://www.scopus.com/inward/record.url?scp=84862119128&partnerID=8YFLogxK
U2 - 10.1257/aer.102.6.2639
DO - 10.1257/aer.102.6.2639
M3 - Article
AN - SCOPUS:84862119128
VL - 102
SP - 2639
EP - 2673
JO - American Economic Review
JF - American Economic Review
SN - 0002-8282
IS - 6
ER -