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Estimates of Medicare Beneficiaries’ Out-of-Pocket Drug Spending in 2006

This report projects the impact of the new Medicare drug benefit on out-of-pocket spending for people who enroll in 2006. This analysis from November 2004 estimates that 6.9 million beneficiaries are projected to be affected by the coverage gap (the so-called “doughnut hole”) in the standard Part D drug benefit. This estimate is based on projected enrollment in Part D plans of 29 million (Congressional Budget Office, July 2004), prior to implementation of the drug benefit and actual enrollment in Part D plans.

Executive Summary (.pdf)

Report (.pdf)