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Medicare: Part D a Success Story for Seniors


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At the time the Medicare prescription drug benefit was being drawn up, many questions arose about how the benefit would work. Would any plans participate? Would people sign up? Would beneficiaries get access to the drugs they needed at affordable rates? Ultimately, the program's success would be judged by whether beneficiaries enrolled in plans that met their needs and whether the program's costs were held within reasonable limits.

Now in its sixth year, Medicare Part D is exceeding expectations. An extensive body of research attests to the program's successes.

  • Overall cost is 43 percent or $435 billion below initial projections
  • Satisfaction rate among beneficiaries is 88 percent
  • Seniors save money through monthly premiums as low as $14
  • Low-income beneficiaries have access to medicines at little or no cost
  • Recent studies also show Part D has lowered Medicare spending by helping patients avoid costly hospitalizations and other health care services

America's health care system faces many difficult economic challenges. Medicare Part D, in contrast, stands as an example of how a health care program runs efficiently and delivers the services and treatments it promised.

 

Resources

Journal of the American Medical Association study
This recently released study conducted by Harvard researchers found that improved access and adherence to medicines through Part D saves Medicare about $1,200 per year in hospital, skilled nursing facilities and other costs for each senior who previously lacked comprehensive prescription drug coverage. 

American Journal of Managed Care: State-Level Impacts of Medicare Part D
This article features a recent study by Harvard Medical School that shows nearly 11 million seniors gained comprehensive prescription drug coverage as a result of Medicare Part D.  This research, coupled with the recent research published in JAMA, shows overall savings to Medicare of $13.4 billion in 2007, the first full year of Part D.

Medicare Part D at Age Five
“Medicare Part D at Age Five: What Has Happened to Seniors’ Prescription Drug Prices?” shows that average costs for medicines frequently used by Part D beneficiaries have declined significantly since the implementation of the program.

Battelle Report on Economic Impact
The U.S. biopharmaceutical industry develops medicines that save, sustain and improve lives. Biopharmaceuticals is also well recognized as a dynamic and innovative business sector generating high-quality jobs and powering economic output and exports for the U.S. economy. This report quantifies this economic impact of the biopharmaceutical sector on the U.S. economy and jobs. Using input/output analysis, this report measures the direct and indirect impacts of the biopharmaceutical sector, and quantifies the economic impacts that would occur if biopharmaceutical revenues increase or decrease from significant changes in the business operating environment.

What Is Medicare Part D?
Medicare prescription drug coverage is insurance run by an insurance company or other private company approved by Medicare. Each plan can vary in cost and drugs covered.

Medicare Plan Finder
This tool helps patients find coverage in their areas by entering no more than a ZIP code for a general plan search. Providing information such as name and Medicare number will yield more personalized search results.