ANALYSIS OF MEDICARE PRESCRIPTION DRUG COVERAGE ENROLLMENT

Abstract

Objectives. To identify factors associated with Medicare beneficiaries' choices of prescription drug plans as part of Medicare Advantage (MAPDs) or stand-alone prescription drug plans (PDPs) in order to help policy-makers understand what drives constituents’ choice between the two and potentially refine prediction models of future prescription drug plan enrollment.

Study Design. We propose a methodology based on beta regression to identify factors associated with Medicare enrollees’ choice of MAPDs or PDPs. We consider demographic factors, medical condition factors and plan characteristics.

Data Sources. We use county level MAPD/PDP penetration rates and Medicare population data for all counties in the United States, except in Alaska.

Principal Findings. Our approach documents key differences in factors driving MAPD and PDP penetration rates.

Conclusions. Our methodology provides insights into the different segments of the U.S. Medicare population that MAPDs and PDPs appeal to.