Medicare HMO Quit Rate Tied To Drug Benefit

For years, it's been a matter of educated conjecture that some Medicare HMO enrollees skip from health plan to health plan to take advantage of pharmacy benefits: Once an enrollee exhausts the benefit in one plan, he jumps to another and begins with a clean slate.

Now, a study in the Journal of the American Medical Association backs up at least some of the conventional wisdom with empirical findings. According to the study, Medicare+Choice enrollees are twice as likely to disenroll if they have reached their annual pharmacy benefit cap. Moreover, the timing of disenrollment is closely linked to the time at which the prescription drug benefit is exhausted.

Thomas Rector, Ph.D., evaluated disenrollment patterns at four network-model Medicare HMOs, which had annual benefit limits of $300, $500, $600, and $1,000.

Rector, who does research for UnitedHealth Group's policy arm, found similarity across the plans in terms of disenrollment characteristics, regardless of the benefit limit.

Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to or online at

Subscribe to Our Newsletters

Monthly table of contents

Be notified as each issue of Managed Care is available online.

Biweekly newsletter

Recent topics have included:

PTCommunity news

New drug approvals, clinical trials, drug management. Three times per week.