Participation and crowd-out in a Medicare drug benefit: simulation estimates
UMass Chan AffiliationsMeyers Primary Care Institute
Department of Medicine, Division of Geriatric Medicine
Health Services Needs and Demand
Insurance, Pharmaceutical Services
Patient Acceptance of Health Care
Proportional Hazards Models
Health Services Research
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AbstractThis article provides information on likely participation in the Medicare prescription drug plan and expected crowd-out. We use a microsimulation model based on data from the MCBS to estimate the costs and benefits of a Medicare drug plan, including the benefits from reductions in risk. The simulations are repeated using different combinations of benefits and subsidies. In addition, the simulations explore the effects of different behavioral parameters for moral hazard (the extent to which participants increase drug spending in response to reduced costs) and risk aversion (the extent to which participants would be willing to pay to avoid risk) to identify the impact of these factors on participation and crowd-out.
SourceHealth Care Financ Rev. 2003 Winter;25(2):47-61. Link to article on publisher's website
Permanent Link to this Itemhttp://hdl.handle.net/20.500.14038/36936
At the time of publication, Becky Briesacher was not yet affiliated with the University of Massachusetts Medical School.