Jack H. Fyock, PhD¹, Sunyna S Williams, PhD², Christina Smith Ritter, MPA², and Kelly J. Dougherty¹. (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 Centers for Medicare and Medicaid Services (CMS) will help Medicare beneficiaries choose a prescription drug coverage plan in 2006. Information about prescription drug plans will be available via Medicare.gov, the Medicare & You handbook, and 1-800-MEDICARE. While details of the new coverage option are still developing, certain attributes are likely to emerge (e.g., monthly premiums, availability of branded drugs, and co-pay amounts). As CMS develops its prescription drug coverage communication strategy, it will be important to understand how these attributes influence an overall decision and whether these decisions are influenced by important moderating variables. In a CMS sponsored conjoint study, 276 beneficiaries chose sample prescription drug coverage plans in a choice task that was repeated 17 times. Results suggest that cost and drug type are three times as important to making a decision than other attributes, such as delivery-type preference (i.e., local pharmacy versus mail order). In addition, there are significant differences among audience segments that may impact how CMS opts to present information to its beneficiaries. For example, people who currently have Medigap policies appear more interested in annual deductibles and maximum benefits and less interested in coinsurance costs than those who have a Medicare Managed Care plan. Given the relative newness of the Medicare prescription drug program, our results provide an important glimpse into how Medicare beneficiaries will choose a prescription drug plan and how audience segments will differ in their decision-making. Implications of how these findings can inform CMS communication activities for Medicare beneficiaries are discussed.

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