Growing differences between Medicare beneficiaries with and without drug coverage

Area of Science:

• Health Economics
• Pharmaceutical Policy
• Gerontology

Background:

• Medicare beneficiaries' access to prescription drug coverage is crucial for health outcomes.
• Understanding trends in drug coverage and utilization is essential for policy development.
• The Medicare Current Beneficiary Survey (MCBS) provides valuable data on beneficiary experiences.

Purpose of the Study:

• To analyze changes in Medicare beneficiaries' prescription drug coverage between 1997 and 1998.
• To compare prescription drug use and spending patterns between covered and non-covered beneficiaries.
• To identify shifts in out-of-pocket drug costs for Medicare beneficiaries.

Main Methods:

• Utilized data from the 1998 Medicare Current Beneficiary Survey (MCBS).
• Examined prescription drug coverage rates from 1997 to 1998.
• Compared drug use and spending data for beneficiaries with and without coverage.

Main Results:

• The aggregate prescription drug coverage rate for Medicare beneficiaries appeared to plateau in 1998.
• Prescription drug use declined for beneficiaries without coverage but increased for those with coverage.
• Beneficiaries with drug coverage paid a higher percentage of their total drug costs out-of-pocket in 1998 compared to 1997, widening use and spending disparities.

Conclusions:

• Medicare prescription drug coverage rates may have reached a plateau in 1998.
• Disparities in prescription drug use and spending widened between beneficiaries with and without coverage.
• Increased out-of-pocket costs for covered beneficiaries highlight potential access and affordability challenges.