A Sustainable Future?: The Role of Premium Subsidies in Medicare Prescription Drug Plans

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Are Medicare prescription drug plans sustainable? Steven D. Pizer, Ph.D., and colleagues examined adverse selection in PDPs, the entrance of PPOs into regional markets where HMOs already existed, and the introduction of PDPs and PPOs in the market where HMOs did not have a presence, and found that modest differences in benefit plans do not dramatically affect market share of different plans. Learn more in the HCFO Findings Brief.