Medicare Part D: Just Say… ??. Presented by Shauna Curwin & Darryl Bandoro. PADM 5111 – Microeconomics March 5, 2009. Prescription Drug Coverage. PART D Largest overhaul in Medicare’s history Provide drug coverage via a half-trillion dollar federal subsidy Liberal Paternalistic Plan?.
Presented by Shauna Curwin &
PADM 5111 – Microeconomics
March 5, 2009
The Problems – Market Failure
“Free Markets and Fettered Consumers” – by Daniel McFadden
Retirement Perspectives Survey (RPS 2005)
Focus on Medicare eligible population – aged 65+, N=1996
Survey asked questions on Part D, health status/conditions, long-term care choices, prescription drug use/cost, and attitudes toward risk.
Part D as an economic policy experiment: can the benefits of competition overcome the problems of adverse selection and moral hazard that are present in private insurance markets and are consumers able to understand and evaluate different plans in their own self-interest?
Medicare Part D Insurance Prescription Drug Market shows that it can be very unrealistic for a large number of uniformed individuals to rely on their own self-interest to make the best decision for themselves.
Seniors have a hard time choosing the best plan for themselves because of its complexity and problems.
TABLE 6—PERCENT WITH LITTLE OR NO KNOWLEDGE OF
TABLE 7—PERCENT NOT LIKELY TO ENROLL
Making the Market more Efficient