A report, America"s Seniors and Medicare, issued by the National Economic Council, analyzed the cost and availability of drug coverage in the current Medicare system. As it stands today, older people can receive coverage for prescription drugs from one of three sources, a health plan offered by their former employer which covers retirees, a Medigap plan which includes prescription drug coverage, or a Medicare HMO which offers drug coverage. The study shows that many older people experience barriers to existing drug coverage benefits. Many employers don"t offer health plans for retirees. The lowest-cost Medigap plan with prescription drug coverage is plan "H", but this plan is not available in all states, and when available the annual premiums can approach or exceed the cap on drug coverage. The third alternative, Medicare HMOs which have drug coverage in a basic benefits package, is not available in all geographic areas.