Other research shows that two-thirds of beneficiaries have some form of drug benefit and that coverage rates are rising. Our research objective is to explore the trend and dynamics of prescription drug coverage in the Medicare population. Medicare Current Beneficiary Cost and Use Surveys. A cohort of noninstitutionalized beneficiaries enrolled throughout the two study years is constructed.
Analyses are both descriptive and inferential.
We then use both panel data regression methods and event history analysis to explore the determinants of changes in prescription drug coverage. Our theoretical model is drawn from economic models of the demand for insurance. Persons with no coverage throughout the two years are older, poorer, and report better health and fewer chronic conditions. Compared to persons who maintain continuous coverage, persons who gain coverage are older, more likely to be married, male, and in better health. Persons who lose coverage are similar to those who gain coverage, but have higher incomes and tend to live in rural areas.