THE WHITE HOUSE

Office of the Press Secretary

MEDICARE BENEFICIARIES IN RURAL AMERICA HAVE A GREATER NEED FOR A

MEDICARE PRESCRIPTION DRUG BENEFIT

Nearly One in Four Medicare Beneficiaries Live in Rural America. Of the forty million Medicare beneficiaries, over nine million live in rural America.

One in Three Beneficiaries Without Prescription Drug Coverage Live in Rural America.

• There are thirteen million Medicare beneficiaries without prescription drug coverage.
• One-third -- approximately 4.5 million -- of these Medicare beneficiaries live in rural America.

Rural Beneficiaries Are More Likely to Lack Medicare Prescription Drug Coverage.

• Nearly fifty percent of rural Medicare beneficiaries lack prescription drug coverage, whereas only thirty-four percent of all Medicare beneficiaries lack coverage.

Rural Beneficiaries are Less Likely to Have Prescription Drug Coverage Across All Income Groups.

• Forty-five percent of Medicare beneficiaries with incomes above $50,000 lack prescription drug coverage whereas only 25 percent of all Medicare beneficiaries across the nation in this same income category lack prescription drug coverage.
• Forty-three percent of Medicare beneficiaries with incomes between $30,000 and $50,000 lack prescription drug coverage whereas only 28 percent of Medicare beneficiaries across the country in this same income category lack prescription drug coverage.
• Fifty-two percent of Medicare beneficiaries with incomes between $10,000 and $30,000 lack prescription drug coverage whereas only 36 percent of all Medicare beneficiaries nationwide in this same income category lack prescription drug coverage.
• Forty-five percent of beneficiaries with incomes below $10,000 lack prescription drug coverage whereas 34 percent of all Medicare beneficiaries in this same income category lack coverage.

These Trends Are Explained By Insufficient Medicare Managed Care, Retiree Health Plans, and Medigap Plans in Rural Areas.

• Many Medicare Managed Care plans, which often offer prescription drug coverage, are not available rural areas and beneficiaries only have access to traditional Medicare, which does not cover prescription drugs. In fact, nearly three out of four Medicare beneficiaries in rural areas do not have access to managed care plans at all.
• Rural Medicare beneficiaries are less to likely have jobs that offer retiree health plans that often offer prescription drug coverage (since such coverage is typically associated with large firms).

Millions More Rural Americans Have Insufficient Drug Coverage.

Medigap plans are often the only option for supplemental coverage in rural areas. Medigap premiums vary widely throughout the nation but are consistently two to three times higher than the Medicare premium proposed by the Administration. Moreover, unlike the Administration's proposal, premiums for Medigap plan substantially increase with age due to "age rating."

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