Posted on July 16, 2010 16:53
Categories: Special Populations | Medicare | Treatment and Recovery
Topics: Medicare | Prescription Drugs | Spending | State Data
The New England Journal of Medicine (NEJM) published a study examining Medicare Part D prescription drug spending by region. The study found significant regional variance that was not offset by cost-savings in other areas of Medicare spending such as doctor visits and hospitalizations. Manhattan had the highest annual Medicare Part D prescription drug spending per person at $2,973 while Hudson, Florida had the lowest at $1,854. The researchers suggest that the differences in beneficiaries’ health and income, physicians’ prescribing habits, and state and local regulations may cause the regional variance.
From the report:
The widespread geographic variation in Medicare spending has garnered a great deal of attention in the health care reform debate, both as a marker of inefficient resource use and as a window into potential strategies for improving the quality and value of U.S. health care. Analyses to date, however, have focused solely on inpatient and outpatient spending (Parts A and B) and have lacked information on pharmaceutical spending (Part D).
Full report: http://content.nejm.org/cgi/reprint/NEJMp1004872.pdf?ssource=hcrc
New England Journal of Medicine. (2010). Geographic variation in Medicare Drug spending. Zhang, Y., Baicker, K., & Newhouse, J.P.
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