Eleven years ago Bob Bennett, then a Republican senator from Utah, made a fiscal sales pitch for including prescription drugs in Medicare coverage for seniors.
Researchers at the University of Illinois and the Johns Hopkins University have made the broadest test yet of Medicare Part D prescription drug program鈥檚 promise 鈥 that covering drugs would keep seniors out of the hospital.
Comparing national records from before and after 2006, when Part D kicked in, that drug coverage was associated with an 8 percent drop in hospital admissions and nearly as much in hospital-cost savings 鈥 an amount they calculate to be $1.5 billion a year.
But here鈥檚 what they didn鈥檛 find: any difference in death rates between the seniors who had access to drugs under Part D and those who didn鈥檛. They thought broader drug coverage might reduce mortality.
鈥淚t鈥檚 somewhat surprising that we didn鈥檛 see a mortality effect, given that we did see decreases in hospitalization,鈥 co-author Robert Kaestner, an economist at the University of Illinois at Chicago, said in an interview.
But the researchers looked only at deaths at the time. Perhaps drug coverage has a cumulative effect that wouldn鈥檛 show up in mortality statistics until later, he said.
For some conditions, the fall in admissions that came with Part D coverage was striking: down 20 percent for dehydration; down 32 percent for chronic obstructive pulmonary disease; down 18 percent for congestive heart failure; down 13 percent for coronary atherosclerosis.
Previous research has also shown that better drug coverage is associated with lower hospital admissions. But the samples were smaller. Or the studies looked at changes in existing drug plans, not the difference between no coverage and full coverage, Kaestner said.
Part D鈥檚 cost to taxpayers still far exceeds the savings it generates in fewer hospital visits. But the $1.5 billion in annual hospital savings associated with Part D coverage effectively reduces the expense of that particular program by 2.2 percent, said Kaestner.
In 2012, relying on previous research, the nonpartisan scorekeepers at the 聽they would begin estimating this kind of savings as part of their total spending projections.