ArticleValue in health : the journal of the International Society for Pharmacoeconomics and Outcomes Research2025
Changes in Out-of-Pocket Drug Expenditures Among Medicare Beneficiaries With Dementia Under the Inflation Reduction Act: A Simulation Study.
Article in Value in health : the journal of the International Society for Pharmacoeconomics and Outcomes Research, 2025. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 1 paper.
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Who cites it
1 citing paper in PubMed.
- Variation in Medicare Part D and Part B drug spending among older adults with Alzheimer's disease and related dementias.Innovation in aging · 2026Article
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Authors and funding
6 authors.
Funding
Abstract
objectivesWe investigated how the Inflation Reduction Act (IRA) Medicare Part D benefit redesign may reduce out-of-pocket (OOP) drug expenditures for Medicare beneficiaries with dementia.
methodsUsing data from the Health and Retirement Study (HRS) linked with Medicare claims, we simulated post-redesign OOP drug spending by applying the 2025 prescription drug cost-sharing rules to each beneficiary's pre-redesign Part D medication utilization for 2016, adjusting for inflation. Our study population comprised HRS respondents aged 65 and older in 2016, enrolled in Medicare fee for service, with at least one Part D drug claim in 2016, and diagnosed with dementia between 2000 and 2016 (n = 1677). We compared pre-redesign and post-redesign annual OOP drug expenditures stratified by: (1) low-income subsidy (LIS) eligibility status; (2) household income among non-LIS beneficiaries; (3) comorbidity count, and 4) cognitive impairment severity.
resultsAfter the redesign, we project average annual OOP drug expenditures among LIS beneficiaries with dementia to decrease from $56 to $25-representing a $31, or 55%, reduction. In contrast, among non-LIS beneficiaries, average OOP drug expenditures is projected to decrease from $772 to $576, a $196, or 25% reduction. We project the reduction in OOP drug expenditures to be greater among beneficiaries with 6 to 8 comorbidities (45%) than among beneficiaries with fewer comorbidities (21%-26%).
conclusionsThe Inflation Reduction Act Medicare Part D benefit redesign will reduce OOP drug spending for beneficiaries with dementia, resulting in potentially marked savings not only for low-income beneficiaries and beneficiaries with a high comorbidity burden but also for higher-income beneficiaries.
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