Abstract:The introduction of Medicare Part D has generated interest in the cost of providing drug coverage to the elderly. Of paramount importance-often unaccounted for in budget estimates-are the salutary effects that increased prescription drug use might have on other Medicare spending. This paper uses longitudinal data from the Medicare Current Beneficiary Survey to estimate how prescription drug benefits affect Medicare spending. We compare spending and service use for Medigap enrollees with and without drug covera… Show more
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