How Is Your Medicare Drug Plan Like Your Cable Company?
KHN's Jay Hancock reports: Economists have long chronicled the "lock-in" effect – the ability to attract shoppers with low prices and then sock them with increases once they’ve stopped paying attention. Boston University economist Keith M. Marzilli Ericson finds the same thing going on in Medicare prescription drug plans. Stick around too long in the same Medicare Part D plan and your premiums will be about 10 percent higher than if you switch to a new offering (Hancock, 9/12).
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