ElderWeb

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.

	Companies Offering Retiree Health Plan	Medigap Plan With Drug Coverage	Medicare HMO With Drug Coverage
State	(1)	(2)	(3)
Alabama	19%	$1,488	N/A
Alaska	N/A	N/A	N/A
Arizona	22%	N/A	94%
Arkansas	14%	$1,896	N/A
California	19%	N/A	93%
Colorado	25%	$1,620	83%
Connecticut	24%	$2,484	97%
Delaware	N/A	$1,440	60%
DC	N/A	N/A	100%
Florida	20%	$2,004	82%
Georgia	24%	$2,580	37%
Hawaii	29%	N/A	100%
Idaho	N/A	N/A	29%
Illinois	25%	$1,572	63%
Indiana	21%	N/A	38%
Iowa	17%	$1,368	N/A
Kansas	21%	$1,512	22%
Kentucky	20%	N/A	28%
Louisiana	24%	N/A	52%
Maine	20%	$2,364	62%
Maryland	23%	N/A	81%
Massachusetts	25%	N/A	97%
Michigan	28%	$1,992	54%
Minnesota	19%	N/A	N/A
Mississippi	17%	$1,680	N/A
Missouri	18%	$1,632	61%
Montana	N/A	$1,332	N/A
Nebraska	22%	$1,332	N/A
Nevada	20%	$1,716	86%
New Hampshire	N/A	$1,260	48%
New Jersey	20%	N/A	100%
New Mexico	20%	$1,692	52%
New York	24%	$1,908	80%
North Carolina	22%	$1,500	N/A
North Dakota	N/A	$1,464	N/A
Ohio	28%	$1,572	83%
Oklahoma	22%	$1,344	75%
Oregon	21%	$1,428	53%
Pennsylvania	22%	$1,704	81%
Rhode Island	N/A	$1,284	92%
South Carolina	21%	$1,704	N/A
South Dakota	N/A	$1,356	N/A
Tennessee	24%	N/A	14%
Texas	19%	$1,488	69%
Utah	21%	$1,356	N/A
Vermont	N/A	$1,860	N/A
Virginia	23%	$1,176	30%
Washington	17%	$1,908	59%
West Virginia	19%	$1,392	N/A
Wisconsin	23%	N/A	42%
Wyoming	N/A	$1,476	N/A
TOTAL	22%	$1,632	61%
Source: National Economic Council, February 2000.
(1) Percent of private companies that offer retiree health benefits.
(2) Availability of Medigap Plan "H" which offers drug coverage, and average annual premium, where available.
(3) Percent of beneficiaries with access to a Medicare HMO that offers drug coverage in its basic benefits package.