Hillside, NJ, March 25, 2003 — The HealthCare Institute of New Jersey (HINJ) today called on Congress to enact a Medicare Prescription Drug Benefit, which would give seniors and the disabled full access to innovative medicines that will help them live longer, healthier and more productive lives.
“Seniors have the greatest need for prescription drug medicines, yet many elderly people do not have a prescription drug plan,” said HINJ President Bob Franks.
In 2001, more than 15 million Medicare beneficiaries lacked any form of drug coverage. Medicare beneficiaries account for 14 percent of the U.S. population, but 43 percent of the nation’s total drug expenditures, according to the Kaiser Family Foundation.
“A prescription drug benefit is essential today because many of the diseases that required hospitalization, surgery or other treatment when Medicare was created in 1965 now can be treated more effectively and less expensively with medicines,” continued Franks.
Prescription medicines account for nine cents out of every health care dollar and are the best value in health care today. Data collected by the HealthCare Institute of New Jersey reveals some startling figures about Medicare and older Americans:
- In 2001, a full 40 percent of Medicare beneficiaries lacked prescription drug coverage;
- Those who were covered, received drug coverage through supplementary insurance from one or more sources including HMOs, Medigap, Medicaid, state assistance programs and employer retiree benefits;
- Medicare beneficiaries without drug coverage use fewer prescriptions ? including essential prescriptions for hypertension, heart failure and stroke ? and were less likely to survive without them;
- Elderly have a greater need for prescription drug assistance since prescription drug use increases with age. In 1999, seniors spent an average of $706 annually on prescription drugs, which is almost double the average ($379) spent by a all other consumers;
- Compared to other living expenses, such as housing transportation and food, prescription drugs represent a small part of total consumer spending for seniors ? just 3 percent;
- Requiring high co-pays and onerous cost-sharing arrangements lead to reduced medication use and more adverse health effects such as hospitalization and nursing home placements.
“There are numerous proposals before Congress which would create a prescription drug benefit and greater health options for seniors. In this day of remarkable innovation, modernizing Medicare to include a prescription drug benefit should be a no-brainer,” said Franks.
The HealthCare Institute of New Jersey promotes public awareness of the state’s research-based pharmaceutical and medical technology industry. The Institute includes 22 worldwide pharmaceutical and medical technology leaders headquartered in New Jersey.