Knowledge Gap Hinders Effective Use of Medicare Part D

According to a recent study published in the Journal of the American Medical Association (JAMA), Medicare Part D beneficiaries lack significant understanding of their drug plans, which in turn is hindering their cost management and negatively impacting their health care.

The study, released in the April 23/30, 2008 issue of JAMA, is the first to examine how well recipients understand the Medicare Drug Plan.  Although it focuses on beneficiaries in Kaiser’s Northern California Medicare Advantage program, the results are likely indicative of most drug plans. 

The study found that 40% of seniors enrolled in a plan were unaware of a coverage gap. These recipients were less likely to cut costs and more likely to feel that the costs of drugs were a significant financial burden. The less knowledge a recipient had, the less likely he or she was to switch to less expensive medication and, unfortunately, more likely to report going without the basic necessities in order to afford medications. Some also reported taking less than the prescribed dose or sometimes not filling a prescription. 

The study found, on the other hand, that the more awareness a recipient had, the better he or she could effectively utilize their drug program.  The financial burden was less significant and they were able to plan for the costs they may later incur. 

A Medicare Drug Plan can be an effective way to afford necessary medication, but the coverage limitations and costs involved can be confusing.  The study suggests providing more education to help beneficiaries understand their policies and to assist them in making wise financial decisions in order to plan for their remaining medication costs.