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Did Medicare Part D reduce mortality?

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  • Huh, Jason
  • Reif, Julian

Abstract

We investigate the implementation of Medicare Part D and estimate that this prescription drug benefit program reduced elderly mortality by 2.2% annually. This was driven primarily by a reduction in cardiovascular mortality, the leading cause of death for the elderly. There was no effect on deaths due to cancer, a condition whose drug treatments are covered under Medicare Part B. We validate these results by demonstrating that the changes in drug utilization following the implementation of Medicare Part D match the mortality patterns we observe. We calculate that the value of the mortality reduction is equal to $5 billion per year.

Suggested Citation

  • Huh, Jason & Reif, Julian, 2017. "Did Medicare Part D reduce mortality?," Journal of Health Economics, Elsevier, vol. 53(C), pages 17-37.
    • Handle: RePEc:eee:jhecon:v:53:y:2017:i:c:p:17-37
    DOI: 10.1016/j.jhealeco.2017.01.005
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    9. Bishop, Kelly C. & Kuminoff, Nicolai V. & Mathes, Sophie M. & Murphy, Alvin D., 2024. "The marginal cost of mortality risk reduction: Evidence from housing markets," Journal of Urban Economics, Elsevier, vol. 139(C).
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    11. Rebecca M. Myerson & Reginald D. Tucker‐Seeley & Dana P. Goldman & Darius N. Lakdawalla, 2020. "Does Medicare Coverage Improve Cancer Detection and Mortality Outcomes?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(3), pages 577-604, June.
    12. Chiara Orsini, 2019. "The mortality effects of changing public funding for home health care: An empirical analysis of Medicare home health care in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 28(7), pages 921-936, July.
    13. Aparna Soni, 2024. "Estimating price elasticities of demand for pain relief drugs: evidence from Medicare Part D," International Journal of Health Economics and Management, Springer, vol. 24(4), pages 481-515, December.
    14. Joshua Krieger & Danielle Li & Dimitris Papanikolaou, 2022. "Missing Novelty in Drug Development," The Review of Financial Studies, Society for Financial Studies, vol. 35(2), pages 636-679.
    15. Ghosh, Ausmita & Simon, Kosali & Sommers, Benjamin D., 2019. "The Effect of Health Insurance on Prescription Drug Use Among Low-Income Adults:Evidence from Recent Medicaid Expansions," Journal of Health Economics, Elsevier, vol. 63(C), pages 64-80.
    16. Ketcham, Jonathan & Kuminoff, Nicolai & Saha, Nirman, 2023. "Valuing Statistical Life Using Seniors' Medical Spending," RFF Working Paper Series 23-16, Resources for the Future.
    17. Pak, Tae-Young & Kim, GwanSeon, 2017. "The impact of Medicare Part D on cognitive functioning at older ages," Social Science & Medicine, Elsevier, vol. 193(C), pages 118-126.
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