Journal article

Use Of Intelligent Assignment To Medicare Part D Plans For People With Schizophrenia Could Produce Substantial Savings

Yuting Zhang, Seo Hyon Baik, Joseph P Newhouse

HEALTH AFFAIRS | PROJECT HOPE | Published : 2015

Abstract

Medicare insures about half of the people in the United States diagnosed with schizophrenia. More than 90 percent of these beneficiaries are eligible for a low-income subsidy for their Part D prescription drug benefit, and the great majority of them are randomly assigned to a stand-alone drug plan. We simulated savings from replacing random assignment with an "intelligent assignment" algorithm that would assign beneficiaries to the least expensive plan in 2010 based on their drug usage in the previous year. Doing so generated projected annual drug savings of $379 per dual-eligible (those enrolled in both Medicaid and Medicare) beneficiary with a low-income subsidy; $404 per non-dual ..

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Grants

Awarded by National Institute of Mental Health


Awarded by Agency for Healthcare Research and Quality


Awarded by AGENCY FOR HEALTHCARE RESEARCH AND QUALITY


Awarded by NATIONAL INSTITUTE OF MENTAL HEALTH


Funding Acknowledgements

Funding for this research was provided by the National Institute of Mental Health (Grants No. RC1 MH088510 and No. R21 MH100721) and the Agency for Healthcare Research and Quality (Grant No. R01 HS018657). Joseph Newhouse is a director of, and holds equity in, Aetna, which sells Part D plans. Yuting Zhang is serving as an unpaid consulting adviser to the Centers for Medicare and Medicaid Services, from December 2014 through November 2015. This work was conducted outside of her CMS capacity, and the views expressed in this article are not the views of CMS.