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  • Thumbnail for  Applying difference-in-differences to measure the effect of Medicare preventive medicine policy
    Applying difference-in-differences to measure the effect of Medicare preventive medicine policy by Brody, Patrick

    In this study I examine the effectiveness of the Medicare Modernization Act’s inclusion of preventive cholesterol screenings with no copay or deductible to Medicare Part B beneficiaries. The screenings were included in the MMA to increase usage of cholesterol screenings among Medicare beneficiaries. Using data from the Medical Expenditure Panel Survey, I employ a difference-in-differences model to isolate the change in screening rate among Medicare beneficiaries. Using individuals not covered by Medicare as a baseline, I find that in three age restricted samples the rate of screening among Medicare beneficiaries either decrease or keep a constant screening rate, relative to the control group. Overall, the MMA’s cholesterol screening policies are not effective in increasing the rate of cholesterol screenings utilized.