Drugs are an essential part of good medical treatment. But the group that relies on prescription drugs the most - Americans over 65 - is the least likely to have drug coverage to help with the cost. Medicare doesn't cover prescription drugs. Why is drug coverage so important?

• According to a 1998 Wall Street Journal poll, 80% of retirees use a prescription drug every day. The average Medicare beneficiary fills a prescription 18 times a year.
  
  
• While 70% of Medicare beneficiaries have some type of drug coverage, it's often inadequate, being cut back, or becoming more and more expensive each year.
  
  
• Many people who have drug coverage don't have continuous coverage - nearly half of Medicare beneficiaries lack drug coverage at some point during the year.
  
  
• Americans age 65 and older account for over 40% of all drug spending, but represent only 12% of the population.
  
  
• According to a national employer survey, approximately 99% of employer-sponsored health plans offered outpatient drug coverage to current workers in 2000.
  
  
• Only 3 of the 10 standardized Medigap plans offer drug coverage, and fewer than 10% of beneficiaries who purchased standardized plans have one with drug coverage.
  
  
• In 2000, 86% of Medicare+Choice plans had annual dollar caps on brand and/or generic drugs. Twenty-one per cent of those plans had a cap of $500 or less. Most plans charged copays for prescription drugs with the average copay for brand name and generic drugs estimated to have increased 21% and 8% respectively between 1999 and 2000.
  
  
• While an estimated 66% of large employers offered retiree health coverage in 1988, fewer than 40% did so in 2000. Of those employers who offered retiree benefits to Medicare-eligible retirees in 2000, 21% did not offer drug coverage.
  
  
• Average out-of-pocket drug costs for all Medicare beneficiaries in 2000 were estimated to be $480.
  
  

AARP believes that Congress should create an affordable, voluntary, prescription drug benefit that is available to all people in Medicare.