The effect of the Medicare Part D prescription benefit on drug utilization and expenditures.
BACKGROUND
Information about the effect of the Medicare Part D Prescription Drug Benefit on drug utilization and expenditures is limited.


OBJECTIVE
To estimate changes in prescription utilization and out-of-pocket expenditures attributable to Part D among a sample of persons eligible for the benefit.


METHODS
Generalized estimating equations were used to estimate changes in expenditures and utilization among beneficiaries. A control group was included to control for secular trends unrelated to the Part D benefit.


METHODS
National pharmacy chain representing approximately 15% of all U.S. retail pharmacy sales.


METHODS
Persons age 66 to 79 years (those eligible for Part D) and a control group of persons age 60 to 63 years (those ineligible for Part D). The final sample represented approximately 5.1 million unique beneficiaries and 1.8 million unique control individuals.


METHODS
Prescription utilization (measured in pill-days) and out-of-pocket expenditures, as determined from pharmacy claims from September 2004 to April 2007.


RESULTS
During the penalty-free Part D enrollment period (January 2006 to May 2006), average monthly drug utilization increased by 1.1% (95% CI, 0.5% to 1.7%; P < 0.001) and out-of-pocket expenditures decreased by 8.8% (CI, 6.6% to 11.0%; P < 0.001). After enrollment stabilized (June 2006 to April 2007), average monthly drug utilization increased by 5.9% (CI, 5.1% to 6.7%; P < 0.001) and out-of-pocket expenditures decreased by 13.1% (CI, 9.6% to 16.6%; P = 0.003). Compared with eligible nonenrollees, enrollees had higher out-of-pocket expenditures and utilization at baseline but experienced significantly larger decreases in expenditures and increases in utilization after enrollment.


CONCLUSIONS
Analyses were limited to claims within 1 pharmacy chain. The effect of the "doughnut hole" and the effect of changes on clinical outcomes were not evaluated.


CONCLUSIONS
The Medicare Part D prescription benefit resulted in modest increases in average drug utilization and decreases in average out-of-pocket expenditures among Part D beneficiaries. Further research is needed to examine patterns among other beneficiaries and to evaluate the effect of these changes on health outcomes.
Yin
Wesley
W
Robert Wood Johnson Scholars in Health Policy Program, Harvard University, Cambridge, Massachusetts, USA.
Basu
Anirban
A
Zhang
James X
JX
Rabbani
Atonu
A
Meltzer
David O
DO
Alexander
G Caleb
GC
D000368:Aged; D011307:Drug Prescriptions / Q000191:economics* / Q000706:statistics & numerical data*; D005252:Fees, Pharmaceutical; D006801:Humans; D054524:Medicare Part D; D014481:United States