In a new study involving a researcher from Washington University in St. Louis’ Olin Business School, the co-authors discovered something they say surprised them: Medicare Part D’s setup actually inhibits insurers from seeking higher subsidies from the government. It keeps subsidies in check by virtue of the way it’s designed.
Medicare Part D decisions can be confusingDuring the next six months, Medicare recipients will need to enroll in one of the new prescription drug coverage plans. But with the deluge of information about Medicare Part D, some reliable and some not, “seniors find themselves in an environment of fear and confusion,” says Edward F. Lawlor, Ph.D., a Medicare expert and dean of the School of Social Work at Washington University in St. Louis. “There is so much noise about the prescription drug program, but people are not getting clear, simple information. Many seniors aren’t even entertaining making the proper plan choice.”