Evaluation of the Part D Payment Demonstration

This project focused on evaluating the impact of the Medicare Part D payment "reinsurance" demonstration. CMS has announced its intent to conduct a demonstration that represented an alternative payment approach for private plans offering prescription drug coverage under Part D. The demonstration was expected to increase the number of offerings of supplemental prescription drug benefits through enhanced alternative coverage. The purpose of this demonstration was to "allow private sector plans maximum flexibility to design alternative prescription drug coverage." This evaluation examined the impact of the demonstration on beneficiaries, drug plan sponsors (PDPs and MA-PDs), and Medicare program costs. From the beneficiary perspective, the evaluation focused on the availability of, and enrollment in, enhanced alternative benefit packages offered by drug plan sponsors, as well as enrollees' patterns of utilization. The evaluation also explored the advantages and disadvantages of participation from the perspective of drug plan sponsors and the Medicare program. Both primary (site visits, focus groups) and secondary CMS data sources were used in the evaluation of this demonstration.