Rural-Urban Enrollment in Part D Prescription Drug Plans: June 2017 Update

Rural enrollment of Medicare beneficiaries in the Medicare Part D prescription drug program has historically lagged urban enrollment. Rural Part D enrollees are overwhelmingly in standalone prescription drug plans (PDPs), whereas urban beneficiaries are more likely to be enrolled in Medicare Advantage with Prescription Drug (MA-PD) plans. This analysis updates prior briefs on the rural-urban enrollment differential in Medicare Part D plans, and highlights state-to-state variation in PDP and MA-PD enrollment by rural-urban residence.

(1) As of June 2017, more than 72 percent of eligible Medicare beneficiaries had prescription drug coverage through Medicare Part D plans, a significantly higher proportion than the 55.6 percent in December 2008.  (2) The percentage of rural enrollment in Part D plans still lags that of urban enrollment, despite growth in both rural and urban participation in Part D plans. (3) Rural enrollees continue to have much higher enrollment in stand-alone PDP plans than do urban enrollees, though rural participation in MA-PD plans has almost doubled since December 2008.