January 19, 2007
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New HCFO Findings Briefs

“Design of a Pharmacy Benefit for Low-Income Seniors: Lessons from State Pharmacy Assistance Programs”

There is limited research in understanding how poor and near-poor elderly and the disabled respond to different drug cost-sharing approaches in the current environment. In order to bridge this gap, researchers at Brandeis University used data from two state programs (Medicaid Pharmacy Plus Medicaid 1115 waiver programs administered by Illinois and Wisconsin) providing pharmacy benefits to low-income seniors prior to Medicare Part D.


“A Sustainable Future? The Role of Premium Subsidies in Medicare Prescription Drug Plans“

In July 2004, HCFO funded research to provide early and timely information on entry, enrollment, and risk selection of Medicare prescription drug plans and regional PPOs. A research team based at Boston University School of Public Health explored adverse selection in PDPs, the entrance of PPOs into regional markets where health maintenance organizations (HMOs) already exist, and the introduction of PDPs and PPOs in markets where HMOs did not have a presence.  Simulation models show that in general, PDPs will be stable, regardless of adverse selection, and that premium support of these programs will ensure viability.



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