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Medicare and Medicaid

Data on Medicare and Medicaid Reported by Researchers at University of Minnesota

Published in Managed Care Weekly Digest, May 7th, 2012

2012 MAY 7 -- According to the authors of recent research published in the journal Health Economics, "Since January 2006 all Medicare beneficiaries have been eligible to obtain outpatient prescription drug coverage through private stand-alone drug plans (PDPs)."

"We estimate a model of beneficiary demand for PDPs and use it to compute the loss of consumer surplus due to tightening PDP formularies to the level found in the Veterans Health Administration (VA). Under a generous assumption of cost savings attributed to increased bargaining leverage associated with exclusion of more drugs from formularies, we find the loss in consumer surplus to be...

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