Despite popular opinion about the state of the United States health care system, a report funded by the United States Social Security Administration at the University of Michigan, suggests that 90 per cent of Americans age 65 or older are covered under insurance policies that provide prescription drug coverage.

In 2004, the report says, this number was only 76 per cent. Additionally, the study says, income has no statistically relevant effect on the amount of coverage - the poor seniors are just as likely to have coverage as the rich.

The Health and Retirement study analyzes drug coverage over a nationally representative body of older Americans, a total sample of 9,321. Participants were interviewed in 2004 and after Medicare Part D was implemented, providing a prescription drug benefit to those covered under medicare in 2006.

This study has been conducted routinely since 1992 is funded by the National Institute on Aging, while the report was funding primarily by the Social Security AdministratIon under the Retirement Research Consortium.

Out of pocket drug spending dropped from $100 in 2004 to $40 in 2006 for those covered under Part D.

“Despite widespread concerns that the plan is complex and confusing, our findings show that 60 percent of seniors who had no drug coverage signed up for Part D,” said co-author Helen Levy. “Further, 70 percent of those who had three or more conditions requiring medication signed up for Part D, compared with 37 percent who had no such medical conditions. This suggests that the decision to sign up reflects a rational economic choice, based on the need for prescription medication.”

The report was written by Helen Levy and David Weir, who is the director of the Health and Retirement Study.

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