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Margie Goulding, PhD, Aging Studies Branch, National Center for Health Statistics, Centers for Disease Control & Prevention, 3311 Toledo Road, Room 6228, Hyattsville, MD 20782, (301) 458-4341, kzr6@cdc.gov
This study examined prescription drug use and spending, and the drug insurance effect on drug spending, among community-dwelling older Americans using Medicare Current Beneficiary Survey (MCBS) data from 1992 to 2000. Over 1992-2000 the proportion of community-dwelling persons age 65 and older with prescription drug coverage any time in the year increased from 59% to 78% and the proportion of community-dwelling persons age 65 and older using prescribed medicines within a year increased from 85% to 91%. Among these prescribed medicine users, the mean number of prescriptions reported for the year rose from almost 19 to almost 27 over 1992-2000. The combination of increases in the proportions of community-dwelling older adults with prescribed medicine use and with prescription drug coverage, increases in the number of prescribed medicines used by older adults, and increases in drug prices, fueled an increase in mean total spending on prescribed medicines of 125% (69% inflation-adjusted) for community-dwelling older adults over 1992-2000. Factors associated with drug spending for community-dwelling older adults reporting prescribed medicine use in year 2000 included gender, age group, race and ethnicity, income, general health status, limitations in activities of daily living, and drug insurance. The drug insurance effect was around $392 in year 2000. That is, with all of these other measured factors equal, an elderly person with drug coverage would be expected to have around $392 more in total annual drug spending than one without drug coverage. This $392 difference is about 33% of the average drug spending for community-dwelling persons 65 and older with prescribed medicine use in year 2000 ($1173). In 1992 the insurance effect was substantially lower in dollar terms – around $155 – but only slightly lower in percentage terms (about 30%). Average drug spending for community-dwelling persons 65 and older with prescribed medicine use was $522 in 1992. Substantial increases in drug use and spending among community-dwelling older Americans have occurred over 1992-2000. Further changes are expected with the implementation of a Medicare drug benefit in 2006. Important questions for future research are: 1) what levels of drug use and spending, public and private, will occur as drug coverage changes, and 2) will these spending levels ensure good access to pharmaceutical treatment for older Americans.
Learning Objectives:
Keywords: Drug Use, Healthcare Costs
Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.