Did You Know ...

According to the New England Journal of Medicine (February 28, 1991), about 43% of the U.S. population will need nursing home care at some point in their lives. Although most nursing home stays are for less than one year, 24% of people now age 65 will remain for a longer period.

One in three Americans with Medicare has no prescription drug coverage at all. Not surprisingly, those with low incomes are less likely to have coverage than those with higher incomes.

Source: Health Affairs, March/April 2000.

Today, the most generous of the 10 standardized Medigap plans cost about $250 per month and, for the maximum benefit, policyholders must spend $6,250 for prescription drugs to recover $3,000 of that cost.

Source: Kaiser Family Foundation and Health Research and Educational Trust, “Employer Health Benefits: 1999 Annual Survey.”

Older Americans, who account for only 13% of the population, purchase more than 33% of the nation’s prescription drugs. This major purchasing segment receives no price discounts such as those given to the Veterans Administration, employee groups, HMOs, and other bulk purchasers.

Source: Families USA, “Still Rising: Drug Price Increases for Seniors 1999–2000,” April, 2000.

In each of the past six years, the prices of the 50 most commonly used drugs by seniors increased significantly faster than inflation, making drugs less and less affordable to people on fixed incomes.

Source: Families USA, “Still Rising: Drug Price Increases for Seniors 1999–2000,” April, 2000.