Prescription Drug Spending by Medicare Beneficiaries in Institutional and Residential Settings, 1998-2001

This study had three specific aims: (1) To prepare nationally-representative estimates of drug spending in long-term care (LTC) facilities; (2) To compare drug use and spending for beneficiaries in LTC facilities versus beneficiaries in the community; and (3) To examine medication use and spending by short-stay skilled nursing home facility residents who transition into LTC facilities. This report describes the processes and methods used to achieve these aims, an overview of the findings, and implications of the findings for CMS, Medicare beneficiaries, LTC providers, and taxpayers. Finally, it concludes with observations about future research steps and identification of priorities that can help support the Department of Health and Human Services in its implementation and evaluation of the Part D drug benefit. [62 PDF pages]