Report to the President: Prescription Drug Coverage, Spending, Utilization, and Prices.. Race

04/01/2000

Table 2-13 shows spending by covered and noncovered beneficiaries by race. Among Medicare beneficiaries, average spending by people with coverage is slightly higher for whites than for blacks or people of other races, but the difference in spending for the covered and the noncovered is slightly greater for nonwhites. However, these differences are not statistically significant. Multivariate analysis would be needed to determine the extent to which any spending differences by race are associated with other factors, such as income, health status, or source of coverage.

Table 2-13. Average Total Spending and Out-of-pocket Spending for Prescription Drugs by Medicare Beneficiaries with and without Drug Coverage, by Race/Ethnicity, 1996
Race/ethnicity Covered Not covered Ratio, covered/not covered
Average total spending Average out-of-pocket Spending Out-of-pocket as % of total spending Average total spending (all out-of-pocket) Average total spending Average Out-of-pocket Spending
Total $769 $253 33% $463 1.66 0.55
White $781 $263 34% $478 1.63 0.55
Black $699 $199 28% $369 1.90 0.54
Other $699 $192 27% $330 2.12 0.58

Note: “Other” includes Asian, Hispanic, and North American Native.

Source: Information and Methods Group, Office of Strategic Planning, Health Care Financing Administration(now known as Centers for Medicare and Medicaid Services(CMS)): Medicare Current Beneficiary Survey Cost and Use File, 1996.

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