03 Mar Gaining Prescription Drug Insurance Reduced Inpatient Medicare Payments

MedicalResearch.com Interview with:
Prof. Robert Kaestner

University of Illinois at Chicago – Institute of Government and Public Affairs
Chicago, IL 60607 and
National Bureau of Economic Research
365 Fifth Avenue, 5th Floor
New York, NY 10016-4309

MedicalResearch.com: What are the main findings of the study?

Prof. Kaestner:  Gaining prescription drug insurance through Medicare Part D was associated with a 8% reduction in the probability of a hospital admission, a 7% reduction in Medicare payments for inpatient services per person (who obtained insurance), and a 12% reduction in hospital resource use per person.
MedicalResearch.com: What should clinicians and patients take away from your report?

Prof. Kaestner:  Prescription drugs are, on average, a substitute for inpatient care.
The greater use of prescription drugs that comes with insurance prevents hospitalizations.
MedicalResearch.com  What recommendations do you have for future research as a result of this study?

Prof. Kaestner:  Future research should try to identify the specific biological and clinical mechanisms underlying the finding that prescription drug use decreased hospitalization.

Citation:
Kaestner, Robert and Long, Cuiping and Alexander, G. Caleb, Effects of Prescription Drug Insurance on Hospitalization and Mortality: Evidence from Medicare Part D (February 2014). NBER Working Paper No. w19948. Available at SSRN: http://ssrn.com/abstract=2403672