The Effect of Medicare Part D on Pharmaceutical Prices and Utilization

S-Tier
Journal: American Economic Review
Year: 2010
Volume: 100
Issue: 1
Pages: 590-607

Authors (2)

Mark Duggan (Stanford University) Fiona Scott Morton (not in RePEc)

Score contribution per author:

4.036 = (α=2.02 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Medicare Part D began coverage of prescription drugs in 2006. Rather than setting pharmaceutical prices, the government contracted with private insurers to provide drug coverage. Theory suggests that additional insured consumers will raise the optimal price of a branded drug, while the insurer's ability to move demand to substitute treatments may lower prices. We estimate the program's effect on the price and utilization of pharmaceutical treatments. We find that Part D enrollees paid substantially lower prices than while uninsured, and increased their utilization of prescription drugs. We find relative price declines only for drugs with significant therapeutic competition. (L18, L11, L65)

Technical Details

RePEc Handle
repec:aea:aecrev:v:100:y:2010:i:1:p:590-607
Journal Field
General
Author Count
2
Added to Database
2026-01-25