Growing differences between Medicare beneficiaries with and without drug coverage

Using data from the 1998 Medicare Current Beneficiary Survey (MCBS), we exa mine changes in beneficiaries' prescription drug coverage from 1997 to 1998 and compare drug use and spending data for beneficiaries with and without drug coverage. The data show that in 1998 the aggregate prescription drug c overage rate of Medicare beneficiaries may have reached a plateau, Also, pr escription drug use declined for beneficiaries without drug coverage and in creased for those with drug coverage. Covered beneficiaries also paid a lar ger percentage of their total drug costs out of pocket in 1998 than in 1997 The result was a widening of use and spending differences between benefici aries with and without coverage.