Rural Perspective on Restructuring Medicare
The objective of this project is to analyze, from the rural perspective, proposals to significantly restructure the Medicare program. We are documenting utilization of prescription drugs by rural beneficiaries and examining implications on design of a Medicare benefit. In addition, we are examining implications of alternative designs of the premium for a government-run, Medicare fee-for-service (FFS) plan (plan that is a key ingredient in the leading restructuring proposals), and rural effects of varying eligibility provisions for a drug benefit.
Publications
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Designing a Medicare Drug Benefit: Balancing Government-Based and Market-Based Approaches, the Implications for Rural Beneficiaries
Date: 01 / 2003
Examines the relationship between a variety of design characteristics of a Medicare prescription drug benefit and their likely impact on rural areas. The research is based on an analysis of three competing legislative proposals, the House passed proposal (HR 4954), the "Tripartisan" proposal (S 2729), and the Graham proposal (S 2625). In addition, there is an analysis of data from the Medicare Current Beneficiary Survey, pharmacy benefit managers, discussions with various state and federal policy makers, and reviews of published literature. The study finds that the different prescription drug proposals will have positive implications for rural areas and address the lack of access to Medicare+Choice drug coverage in rural areas. Rural pharmacies may see a change in revenue, but the actual result of the changes has not been studied.
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