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Medicare Reform and the Pharmaceutical Industry: Implications of the Medicare Prescription Drug Improvement and Modernization Act of 2003

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SKU: KLI959630 Categories: Pharmaceuticals Market Research, Prescription Drugs Market Reports Pages: 70
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Description

The hard-fought battle over Medicare’s prescription drug benefit is over, but the long-term effects of the new law are still unclear. Exactly who will benefit and by how much? Is it a victory for big pharma? Initial reactions are not always correct, and this examination into the true implications for pharmaceutical markets looks at all the facts.

This market briefing from Kalorama describes and assesses the provisions of the “Medicare Prescription Drug, Improvement and Modernization Act of 2003” and predicts their potential impacts on the American pharmaceutical industry. Numerous tables and figures regarding the Medicare age population, it economics and healthcare expenditures, support conclusions regarding this controversial piece of legislation.

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

 

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