The Medicare Prescription Drug Improvement and Modernization Act of 2003 created prescription drug coverage for Medicare beneficiaries (Medicare Part D) through regional stand-alone prescription drug plans and regional preferred provider organizations (PPOs).
In this 2004 to 2006 project, Steven D. Pizer, PhD, led a team of researchers in analyzing entry, enrollment and risk selection (the process by which health plans seek to enroll healthy, low-cost subscribers) of Medicare prescription drug plans. The researchers built statistical models and used them to simulate market entry and costs for the new plans.
The project was part of the Robert Wood Johnson Foundation (RWJF) Changes in Health Care Financing and Organization (HCFO) national program. HCFO supports policy analysis, research, evaluation and demonstration projects that provide public and private decision leaders with usable and timely information on health care policy and financing issues.
Two Findings Briefs on the project are available at the HCFO website, one on regional PPOs in Medicare and the other on premium subsidies in Medicare prescription drug plans.
The Findings Briefs report the following key findings: