Kaiser Family Foundation Study Examines Seniors’ Medicare Part D Plan Choices From Economic Perspective

"Choosing a Medicare Part D Plan: Are Medicare Beneficiaries Choosing Low-Cost Plans?" Kaiser Family Foundation: The study, written by Massachusetts Institute of Technology economist Jonathan Gruber for the Foundation, finds that most Medicare Part D beneficiaries did not choose one of the lowest-cost drug plans in their area in 2006. The study found that 6% of beneficiaries in 2006 opted for the lowest-cost plan available and that those who did not choose the lowest-cost plans could have saved an average of $520 that year if they had opted for a less costly plan. The study also found that 10% of beneficiaries chose one of the lowest-cost plans available -- defined as the 5% of plans that would have resulted in the lowest costs -- and that others would have saved an average of $400 if they had chosen those plans. Fifty-three percent of beneficiaries enrolled in one of the lowest-cost 25% of the plans, and had others opted for those plans, they would have saved $220 on average (Kaiser Family Foundation release, 3/9).