One important factor to consider with medications for Medicare beneficiaries is how they can not only improve health but also potentially impact productivity. It’s essential to evaluate whether new treatments can help older individuals re-enter the workforce, work more hours, or work more productively.
When looking at individuals aged 65 and older, data shows that a significant portion are still in the labor force. For example, 26.6% of those aged 65-74 and 8.2% of those 75 and older are actively working. Additionally, 7.5% of Medicare beneficiaries are enrolled in Part A only, indicating they are still employed with employer-sponsored insurance.
It’s also important to note the income levels of Medicare beneficiaries, with median incomes around $36,000 for all beneficiaries and $37,800 for those aged 65 and older. These figures encompass income from various sources, including wages, investments, and Social Security.
While many studies overlook the impact of medications on non-market labor like volunteering, research shows that a significant portion of older Americans engage in voluntary work. Considering these factors, it’s clear that the productivity impacts of new medications on older individuals, while perhaps not as pronounced as for younger groups, should not be disregarded.
