Journal article

THE JANUARY EFFECT: MEDICATION REINITIATION AMONG MEDICARE PART D BENEFICIARIES

Cameron Kaplan, Yuting Zhang

HEALTH ECONOMICS | WILEY-BLACKWELL | Published : 2014

Abstract

The Medicare prescription drug program (Part D) standard benefit includes deductible, initial coverage, coverage gap and catastrophic coverage phases. As beneficiaries enter each phase, their out-of-pocket medication costs change discontinuously. The benefit cycle restarts on 1 January of the next year. Taking advantage of variation in drug coverage, we study how individuals reinitiate discontinued medications in response to the non-linear price schedule. Because some beneficiaries who receive low-income subsidies (LIS) have zero or fixed small copayments throughout the year, we perform a difference-in-difference analysis by using the LIS group as a comparison. We find that individuals delay..

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Grants

Awarded by Agency for Healthcare Research and Quality


Awarded by National Institute of Mental Health


Awarded by AGENCY FOR HEALTHCARE RESEARCH AND QUALITY


Awarded by NATIONAL INSTITUTE OF MENTAL HEALTH


Funding Acknowledgements

The study was supported by grants from Agency for Healthcare Research and Quality (R01 HS018657) and National Institute of Mental Health (RC1 MH088510). During the study, Dr. Zhang was also supported by a grant from the Institute of Medicine. During the study period, Dr. Kaplan was a post-doctoral associate at the University of Pittsburgh. We would like to thank Dominic Hodgkin for valuable comments and Seo Hyon Baik for excellent programming support in part of the analysis. All errors are our own.