Study Finds Medicare Part D Reduces Non-Drug Medicare Spending by $12B Annually

A recent study by researchers at Harvard University Medical School published in the Journal of the American Medical Association found that Medicare Part D led to an estimated savings of $12 billion per year, in part by improving medication adherence, according to a report by the Healthcare Financial Management Association.

The $12 billion savings calculates to a roughly $1,200 annual savings per Part D beneficiary.

The study examined non-drug Medicare costs of 6,000 seniors from 2004 through 2007 and compared spending from before 2006 — when Part D was enacted — to spending after that.

The study also found that in addition to better medication adherence, additional savings arose from physicians no longer admitting patients to hospitals so Medicare could pay for drug treatments, according to the study.

Read the HFMA report on Medicare Part D.

Read the JAMA abstract on the Medicare Part D study.

Study Finds Medicare Part D Reduces Non-Drug Medicare Spending by $12B Annually

Related Articles on Medicare:
CMS Issues Final IPPS Rules, Net Medicare Reimbursements to Increase 1.1%
President Obama Signs Debt Deal With Possible 2% Medicare Cut

Next Up in Financial Management

Rural Ohio system waiting on $80M in CMS payments

New Hampshire system walking back merger gets credit rating boost

360 hospital and health system CNOs to know | 2026

Related Articles on Medicare: CMS Issues Final IPPS Rules, Net Medicare Reimbursements to Increase 1.1% President Obama Signs Debt Deal With Possible 2% Medicare Cut

Next Up in Financial Management

Join the 500,000+ healthcare executives who start their day with Becker's

Related Articles on Medicare:
CMS Issues Final IPPS Rules, Net Medicare Reimbursements to Increase 1.1%
President Obama Signs Debt Deal With Possible 2% Medicare Cut