Does prescription drug coverage improve mental health? Evidence from Medicare Part D

Padmaja Ayyagari; Dan M Shane

doi:10.1016/j.jhealeco.2015.01.006

Does prescription drug coverage improve mental health? Evidence from Medicare Part D

J Health Econ. 2015 May:41:46-58. doi: 10.1016/j.jhealeco.2015.01.006. Epub 2015 Jan 24.

Authors

Padmaja Ayyagari¹, Dan M Shane²

Affiliations

¹ Department of Health Management and Policy, University of Iowa, 145 North Riverside Drive, Iowa City, IA 52242, United States. Electronic address: padmaja-ayyagari@uiowa.edu.
² Department of Health Management and Policy, University of Iowa, 145 North Riverside Drive, Iowa City, IA 52242, United States. Electronic address: dan-shane@uiowa.edu.

PMID: 25666229
DOI: 10.1016/j.jhealeco.2015.01.006

Abstract

The introduction of the Medicare Prescription Drug program (Part D) in 2006 resulted in a significant increase in access to coverage for older adults in the U.S. Several studies have documented the impact of this program on prescription drug utilization, expenditures and medication adherence among older adults. However, few studies have evaluated the extent to which these changes have affected the health of seniors. In this study we use data from the Health and Retirement Study to identify the impact of the Medicare Part D program on mental health. Using a difference-in-difference approach, we find that the program significantly reduced depressive symptoms among older adults. We explore the mechanisms through which this effect operates and evaluate heterogeneity in impact.

Keywords: Antidepressants; CESD score; Difference-in-difference; Medicare Part D; Prescription drug coverage.

MeSH terms

Aged
Depression / drug therapy
Female
Humans
Insurance Coverage*
Male
Medicare Part D*
Mental Health*
Middle Aged
Models, Statistical
United States