Table of Contents

EXECUTIVE SUMMARY

BACKGROUND

DEMOGRAPHICS OF THE OLDER POPULATION

• Figure 1: Actual and Projected Population of Individuals Aged 65 Years and Older in the United States: 1900 – 2050

• Figure 2: Actual and Projected Percentage of the United States Population Age 65 and Older: 1900 – 2050

• Table 1: Life Expectancy by Age Group and Sex, in Years 1900 – 2000

• Figure 3: Actual and Projected Percentage of the United States Population Age 85 and Older: 1900 – 2050

• Table 2: Marital Status of the United States Population Age 65 and Older by Age Group and Sex: 2002

ECONOMIC STATUS OF THE OLDER POPULATION

• Figure 4: Income Distribution of the United States Population Age 65 and Over 1974 – 2001

• Figure 5: Percentage of the United States Population Living in Poverty by Age Group 65 Years of Age and Older: 1982 – 2001

• Table 3: Median Household Net Worth By Age Group in the United States for Individuals 65 Years of Age and Older: 1984 – 1999

• Figure 6: Household Income Distribution in the United States by Age Group got Individuals 65 Years of Age and Older: 2000

PRESCRIPTION DRUG EXPENDITURES AMONG THE OLDER POPULATION

• Table 4: Average Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older, in 1999 Dollars, by Age Group: 1992 – 1999

• Figure 7: Distribution of Medicare Expenditures by Age Group 1992 and 1999

• Figure 8: The Ratio of Average Healthcare Expenditures by Age Group to the Average Healthcare Expenditures for the Group of Individuals 65 Years of Age and Older as a Whole 1992 – 1999

• Table 5: Percentage of Healthcare Expenditures Incurred by Medicare Beneficiaries Age 65 or Older by Level of Expenditures: 1999

• Table 6: Distribution of Healthcare Expenditures Among Medicare Beneficiaries Age 65 and Older by Institutional Status: 1999

• Table 7: Components of Healthcare Expenditures: 1992 and 1999

• Table 8: Percentage Distribution of Major Components of Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older by Age Group: 1999

• Table 9: Dollar Value Distribution of Major Components of Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older by Age Group: 1999

• Figure 9: Trending in the Percentage Distribution of Major Components of Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older by Age Group: 1999

• Figure 10: Trending in the Dollar Value Distribution of Major Components of Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older by Age Group: 1999

• Table 10: Percentage Distribution of Major Components of Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older by Income Level: 1999

• Figure 11: Trending in the Percentage Distribution of Major Components of Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older by Income Level: 19993

• Table 11: Dollar Value Distribution of Major Components of Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older by Income Level: 1999

• Figure 12: Trending in the Dollar Value Distribution of Major Components of Healthcare Expenditures Among Medicare Beneficiaries Age 65 or Older by Income Level: 1999

PROVISIONS OF THE NEW MEDICARE PHARMACEUTICAL BENEFITS

• Table 12: Timeline for Medicare Changes, 2004 to 2007

ANALYSIS AND CONCLUSIONS

• Table 14: Provisions of the Kennedy/Dingell Bill to Amend the Medicare Prescription Drug, Improvement and Modernization Act of 2003 Submitted as the “Defense of Medicare and Real Medicare Prescription Drug Benefit Act”
• Table 15: Estimated Beneficiary Savings Under the New Medicare Prescription Drug Benefit by Prescription Costs in Each Beneficiary Category
• Table 16: Estimated Average Beneficiary Savings Under the New Medicare Prescription Drug Benefit by Age Group In Each Beneficiary Category
• Table 17: Estimated Average Beneficiary Savings Under the New Medicare Prescription Drug Benefit by Income Group
• Figure 13: Average Annual Prescription Drug Use by Age Group: 1999