Jack H. Fyock, PhD¹, Sunyna S Williams, PhD², Christina Smith Ritter, MPA², Kelly J. Dougherty¹, and Catherine Jo¹. (1) Health Services Research and Management Group, BearingPoint, Inc., 1676 International Drive, McLean, VA 22012, 703-747-3293, jack.fyock@bearingpoint.com, (2) Division of Beneficiary Analysis, Centers for Medicare and Medicaid Services, 7500 Security Blvd, S1-13-05, Woodlawn, MD 21244

The complexity of the Medicare program poses challenges as beneficiaries decide on the scope of their health care coverage. Beneficiaries frequently consider doctor choice, monthly fees, annual deductibles, preventive care, and quality of health care services as they piece together health care coverage. In 2006, beneficiaries will also need to consider how the new prescription drug benefit fits into the equation. The Centers for Medicare and Medicaid Services’ (CMS) provides information designed to help beneficiaries choose an appropriate health care coverage package. To help CMS understand which information beneficiaries use to make decisions, we presented 276 beneficiaries with three sample health plans, which varied the details of key attributes similar to those mentioned above and including a prescription drug option. Participants chose the plan they thought best for them. After each choice, a new set of plans appeared and participants chose again; this process was repeated 17 times. While results tend to be consistent with prior research (e.g., health plan premiums are important when choosing a plan), the value participants assigned to these attributes suggest that some attributes, described as important in qualitative settings, do not dramatically influence health care package choices. For example, even participants with Medigap coverage appear willing to forgo doctor choice for lower costs. In addition, the inclusion of a prescription drug benefit in this task provides an early glimpse into how a prescription drug benefit will affect beneficiaries’ choices. Implications of how these findings can inform CMS communication activities for Medicare beneficiaries are discussed.

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