Medicare Part D Resulted In Significant Savings By Reducing Hospital And Nursing Home Admissions

From "Medicare Rx Benefit Cut Other Medicare Program Costs" by Emily P. Walker, Washington Correspondent, MedPage Today:

The increased medication use spurred by the creation of Medicare Part D has cut hospital and nursing home admissions, resulting in a significant savings in other parts of the Medicare program, a new study found.

The study -- published in the July 27 issue of the Journal of the American Medical Association (JAMA) -- found that after Medicare's drug benefit went into effect in 2006, spending on nondrug medical coverage significantly decreased for seniors who had limited drug coverage before Part D.***The study found that spending on nondrug medical expenses for Medicare beneficiaries who had limited drug coverage before Medicare Part D was 10% less than it would have been had Medicare not been expanded to include prescription drug coverage.

The average savings on nonmedication costs per Medicare beneficiary who had poor drug coverage before 2006 was about $1,200 per year.