Order Code RS21675
November 20, 2003
CRS Report for Congress
Received through the CRS Web
Medicare Prescription Drug Proposals:
Estimates of Beneficiaries Who Fall Below
Income Thresholds, by State
Chris L. Peterson
Analyst in Social Legislation
Domestic Social Policy Division
Summary
The Senate and House have passed bills — S. 1 and H.R. 1 — to add prescription
drug benefits and to make other changes to Medicare. A conference committee has
announced an agreement that reconciles differences between the two bills, but the
specific provisions are not yet known. All the bills provide subsidies to low-income
beneficiaries for prescription drug coverage and use various poverty thresholds to
determine eligibility. Using the most recent data, this report provides state-by-state
estimates of the percentage and number of beneficiaries who fall below various low-
income thresholds, using the definition of income specified in the legislation. The asset
(or “resource”) requirements included in these proposals were not factored into the
analysis. This report replaces CRS Report RL31736, Medicare Prescription Drug
Proposals: Estimates of Aged Beneficiaries Who Fall Below Income Criteria, by State
and will be updated to reflect legislative developments.
The Senate and House have passed bills — the Prescription Drug and Medicare
Improvement Act of 2003 (S. 1) and the Medicare Prescription Drug and Modernization
Act of 2003 (H.R. 1) — to add prescription drug benefits and to make other changes to
Medicare.
A conference committee has announced an agreement that reconciles
differences between the two bills, but the specific provisions are not yet known. Both
bills provide subsidies to low-income beneficiaries for prescription drug coverage and use
various poverty thresholds to determine eligibility.
For a full discussion of the
prescription drug benefits for low-income beneficiaries and the income thresholds for
which they apply under H.R. 1 and S. 1, see CRS Report RL31525, Medicare:
Beneficiary Cost-Sharing Under Prescription Drug Legislation, as well as RS21583,
Medicare Prescription Drug Legislation: Comparison of Actuarial Values. Table 1
shows estimates of the percentage and number of noninstitutionalized aged (age 65 or
older) Medicare beneficiaries below various income thresholds, for each state and
nationally. Table 2 shows the same estimates except it is for all noninstitutionalized
beneficiaries, not just the aged.
Congressional Research Service ˜ The Library of Congress

---

CRS-2
Table 1. Average Percentage and Number of Aged (65 and Older), Noninstitutionalized Medicare Beneficiaries with
Countable Incomes Below Specified Levels, by State, 2000-2002
Below 74% of poverty
Below 100% of poverty
Below 135% of poverty
Below 150% of poverty
Below 160% of poverty
Total avg
number of
Percentage
Number
Percentage
Number
Percentage
Number
Percentage
Number
Percentage
Number
State
beneficiaries
Alabama
8% ± 1.8%
43,000
20.4% ± 2.7% **
109,000
34.8% ± 3.2% **
186,000
41.2% ± 3.3% **
221,000 45.4% ± 3.3% **
243,000
535,000
Alaska
6.8% ± 2.3%
3,000
14.2% ± 3.2%
6,000
25.3% ± 3.9%
10,000
31.7% ± 4.2%
12,000
35% ± 4.3%
14,000
39,000
Arizona
5.9% ± 1.8%
36,000
10.9% ± 2.3% *
67,000
22.4% ± 3.1% *
138,000
27.6% ± 3.3% *
170,000 30.6% ± 3.4% *
188,000
616,000
Arkansas
7.5% ± 1.7%
29,000
19.4% ± 2.6% **
74,000
33.7% ± 3.1% **
128,000
40.8% ± 3.2% **
155,000 43.8% ± 3.3% **
167,000
380,000
California
8% ± 1% **
251,000
14.9% ± 1.3%
468,000
30.9% ± 1.7% **
971,000
37.4% ± 1.8% **
1,175,000 40.9% ± 1.8% **
1,285,000
3,139,000
Colorado
5.6% ± 1.5%
23,000
13.1% ± 2.2%
54,000
24.3% ± 2.8% *
101,000
30% ± 3% *
124,000
33% ± 3.1% *
137,000
414,000
Connecticut
4.6% ± 1.1% *
22,000
10.5% ± 1.7% *
51,000
20.5% ± 2.2% *
99,000
25.2% ± 2.4% *
121,000 28.3% ± 2.4% *
136,000
481,000
Delaware
4% ± 1.2% *
4,000
10% ± 1.9% *
10,000
22.8% ± 2.6% *
22,000
27.1% ± 2.8% *
26,000 30.7% ± 2.9% *
29,000
95,000
DC
14.1% ± 3% **
8,000
27.1% ± 3.9% **
16,000
39.4% ± 4.2% **
23,000
43.7% ± 4.3% **
26,000
46% ± 4.3% **
27,000
60,000
Florida
7% ± 0.9%
181,000
15.8% ± 1.2%
410,000
29.6% ± 1.6%
767,000
35.4% ± 1.6%
916,000 38.8% ± 1.7%
1,003,000
2,587,000
Georgia
7.5% ± 2.1%
54,000
20.3% ± 3.1% **
144,000
35.1% ± 3.7% **
249,000
42.2% ± 3.9% **
301,000 44.7% ± 3.9% **
318,000
711,000
Hawaii
12.1% ± 2.1% **
18,000
19.4% ± 2.6% **
29,000
31.8% ± 3.1%
47,000
36% ± 3.2%
53,000
39% ± 3.2%
58,000
147,000
Idaho
2.9% ± 1.2% *
4,000
9.6% ± 2.2% *
14,000
22.4% ± 3.1% *
32,000
29.2% ± 3.4% *
42,000 31.1% ± 3.5% *
44,000
143,000
Illinois
6.4% ± 1.1%
86,000
13.5% ± 1.6% *
180,000
25.8% ± 2% *
346,000
32.6% ± 2.2%
436,000 35.9% ± 2.2%
481,000
1,339,000
Indiana
4.9% ± 1.2% *
37,000
11.4% ± 1.8% *
87,000
28.4% ± 2.5%
216,000
34% ± 2.7%
258,000 37.7% ± 2.7%
286,000
759,000
Iowa
5.2% ± 1.3% *
20,000
11.2% ± 1.8% *
43,000
23.1% ± 2.5% *
89,000
28% ± 2.6% *
109,000 31.8% ± 2.7% *
123,000
388,000
Kansas
3.5% ± 1.1% *
13,000
11.3% ± 1.9% *
41,000
27.3% ± 2.6%
99,000
32.6% ± 2.8%
119,000 35.7% ± 2.8%
130,000
364,000
Kentucky
9.2% ± 2% **
45,000
17.7% ± 2.6%
85,000
30.8% ± 3.1%
149,000
38% ± 3.2% **
183,000 41.1% ± 3.3%
198,000
482,000
Louisiana
9.2% ± 2.2% **
44,000
20.2% ± 3% **
97,000
37.7% ± 3.6% **
180,000
42.7% ± 3.7% **
204,000 46.4% ± 3.7% **
222,000
478,000
Maine
5.4% ± 1.2% *
11,000
14.7% ± 1.9%
29,000
32% ± 2.4% **
62,000
39.5% ± 2.6% **
77,000 44.9% ± 2.6% **
87,000
194,000
Maryland
6.8% ± 1.6%
41,000
15.1% ± 2.2%
91,000
26.8% ± 2.8%
162,000
31% ± 2.9% *
187,000
34% ± 3% *
206,000
605,000
Massachusetts
7.9% ± 1.5%
62,000
16.5% ± 2%
130,000
28.9% ± 2.5%
227,000
35.7% ± 2.7%
280,000 40.5% ± 2.7%
318,000
784,000
Michigan
5.2% ± 1.1% *
57,000
12.6% ± 1.6% *
140,000
23.2% ± 2.1% *
257,000
29.3% ± 2.2% *
324,000 33.7% ± 2.3% *
373,000
1,105,000
Minnesota
5.4% ± 1.5%
26,000
11.6% ± 2.2% *
55,000
23.1% ± 2.9% *
108,000
27.6% ± 3.1% *
130,000 32.2% ± 3.2% *
151,000
469,000
Mississippi
10% ± 2.3% **
31,000
27.2% ± 3.4% **
85,000
42.2% ± 3.8% **
131,000
47.3% ± 3.8% **
147,000 50.5% ± 3.8% **
157,000
311,000
Missouri
3.6% ± 1.2% *
23,000
10.8% ± 2% *
69,000
22% ± 2.6% *
141,000
27.9% ± 2.8% *
178,000 32.4% ± 2.9% *
207,000
639,000
Montana
4.5% ± 1.4% *
6,000
12.7% ± 2.3% *
16,000
25.8% ± 3.1%
32,000
33% ± 3.3%
41,000 35.3% ± 3.3%
44,000
124,000
Nebraska
6.4% ± 1.6%
13,000
13.4% ± 2.3%
27,000
24.9% ± 2.9% *
49,000
32.2% ± 3.2%
64,000 36.2% ± 3.2%
71,000
198,000
Nevada
6% ± 1.6%
13,000
12.5% ± 2.2% *
28,000
24.5% ± 2.9% *
55,000
30.6% ± 3.1% *
68,000 34.5% ± 3.1% *
77,000
223,000
New Hampshire
4.7% ± 1.2% *
8,000
9.9% ± 1.7% *
16,000
21% ± 2.4% *
34,000
27.8% ± 2.6% *
44,000 32.1% ± 2.7% *
51,000
160,000

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CRS-3
Below 74% of poverty
Below 100% of poverty
Below 135% of poverty
Below 150% of poverty
Below 160% of poverty
Total avg
number of
Percentage
Number
Percentage
Number
Percentage
Number
Percentage
Number
Percentage
Number
State
beneficiaries
New Jersey
6.1% ± 1.1%
69,000
13% ± 1.6% *
146,000
24.3% ± 2% *
273,000
30.1% ± 2.1% *
338,000 33.2% ± 2.2% *
373,000
1,122,000
New Mexico
10.9% ± 2.4% **
25,000
19.3% ± 3.1% **
43,000
33% ± 3.7% **
74,000
38.2% ± 3.8%
86,000 41.7% ± 3.9%
94,000
225,000
New York
8.5% ± 1% **
195,000
18.8% ± 1.3% **
431,000
31.2% ± 1.6% **
715,000
37.7% ± 1.7% **
864,000 40.9% ± 1.7% **
938,000
2,293,000
North Carolina
9.1% ± 1.6% **
85,000
19.8% ± 2.2% **
186,000
35.4% ± 2.7% **
332,000
39.7% ± 2.7% **
373,000 42.8% ± 2.7% **
402,000
940,000
North Dakota
7% ± 1.6%
6,000
15.8% ± 2.2%
13,000
29.8% ± 2.8%
25,000
36.2% ± 2.9%
31,000
42.6% ± 3% **
36,000
85,000
Ohio
5.9% ± 1.1%
81,000
12.6% ± 1.5% *
173,000
25.7% ± 2% *
351,000
30.9% ± 2.1% *
422,000 33.8% ± 2.2% *
462,000
1,367,000
Oklahoma
6.9% ± 1.6%
30,000
14.4% ± 2.3%
63,000
28% ± 2.9%
121,000
32.5% ± 3%
141,000 36.1% ± 3.1%
157,000
434,000
Oregon
3.9% ± 1.3% *
15,000
9.2% ± 2% *
35,000
21.6% ± 2.8% *
82,000
26.2% ± 3% *
100,000 29.7% ± 3.1% *
113,000
380,000
Pennsylvania
5.1% ± 0.9% *
85,000
12.3% ± 1.3% *
204,000
25.4% ± 1.7% *
422,000
31.5% ± 1.9% *
523,000 34.9% ± 1.9% *
580,000
1,663,000
Rhode Island
5.6% ± 1.2% *
9,000
16% ± 1.9%
25,000
31.1% ± 2.4% **
48,000
37.9% ± 2.5% **
58,000 40.5% ± 2.6%
62,000
153,000
South Carolina
9.1% ± 1.8% **
45,000
20.4% ± 2.6% **
101,000
35.8% ± 3.1% **
178,000
40.7% ± 3.2% **
202,000 44.2% ± 3.2% **
220,000
497,000
South Dakota
5.1% ± 1.3% *
5,000
12.2% ± 1.9% *
12,000
28.9% ± 2.6%
29,000
34.2% ± 2.8%
35,000
38% ± 2.8%
39,000
102,000
Tennessee
9.6% ± 2.2% **
58,000
21.2% ± 3% **
128,000
37.7% ± 3.6% **
227,000
43.9% ± 3.7% **
265,000 49.2% ± 3.7% **
297,000
603,000
Texas
9.6% ± 1.3% **
190,000
20% ± 1.8% **
399,000
34.2% ± 2.1% **
682,000
40% ± 2.2% **
798,000 43.2% ± 2.2% **
862,000
1,994,000
Utah
6.5% ± 2.1%
11,000
14.5% ± 3%
24,000
24.5% ± 3.7% *
41,000
28.5% ± 3.8% *
48,000 31.6% ± 3.9% *
53,000
168,000
Vermont
5.9% ± 1.5%
4,000
15.3% ± 2.3%
11,000
31.7% ± 3% **
23,000
38.4% ± 3.1% **
27,000 41.7% ± 3.1% **
30,000
71,000
Virginia
6.6% ± 1.7%
51,000
14.8% ± 2.4%
114,000
28.1% ± 3%
216,000
35.1% ± 3.2%
270,000 38.3% ± 3.2%
295,000
770,000
Washington
5.9% ± 1.6%
38,000
10.9% ± 2.1% *
70,000
19.6% ± 2.7% *
126,000
24.3% ± 3% *
156,000 27.6% ± 3.1% *
178,000
643,000
West Virginia
6.2% ± 1.4%
17,000
16.3% ± 2.1%
44,000
30.1% ± 2.6%
82,000
35.9% ± 2.7%
98,000 40.7% ± 2.8%
111,000
272,000
Wisconsin
3.7% ± 1.1% *
24,000
9.8% ± 1.7% *
64,000
18.9% ± 2.3% *
123,000
24.9% ± 2.5% *
162,000 29.4% ± 2.6% *
191,000
650,000
Wyoming
5% ± 1.5% *
3,000
11.6% ± 2.2% *
7,000
26.4% ± 3%
15,000
33.9% ± 3.2%
19,000
39% ± 3.3%
22,000
57,000
United States
6.9% ± 0.2%
2,255,000 15.3% ± 0.3%
4,961,000 28.6% ± 0.4%
9,298,000 34.5% ± 0.4%
11,206,000
38% ± 0.4%
12,345,000
32,459,000
Source: Table prepared by the Congressional Research Service based on data from the March supplement of the Current Population Survey, 2001-2003.
Note: Income is determined based on the definition of countable income for Supplemental Security Income, not by total family income. The Department of Health and Human Services’ federal
poverty guidelines are used rather than the Census Bureau’s federal poverty threshold. The range given for the percentages reflect the 90% confidence interval. These demonstrate that, because
the estimates are based on a portion of the entire aged Medicare population, the estimates are subject to variability. The size of the confidence intervals depends primarily on sample size. A 90%
confidence interval means that if all possible samples were surveyed under the same sample design and general conditions, the estimated percentage in each income category would lie within
the confidence interval 9 out of 10 times. The number of beneficiaries is based on the corresponding percentage point estimate. The number of beneficiaries is subject to the same kind of variability
as the percentage, but the 90% confidence interval is not provided because of space constraints.
* Indicates percentage of beneficiaries is statistically lower than the national rate, at the 90% confidence level.
** Indicates the percentage of beneficiaries is statistically higher than the national rate, at the 90% confidence level.

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CRS-4
Table 2. Average Percentage and Number of Noninstitutionalized Medicare Beneficiaries (Aged and Disabled) with
Countable Incomes Below Specified Levels, by State, 2000-2002
Below 74% of poverty
Below 100% of poverty
Below 135% of poverty
Below 150% of poverty
Below 160% of poverty
Total avg
number of
Percentage
Number
Percentage
Number
Percentage
Number
Percentage
Number
Percentage
Number
State
beneficiaries
Alabama
11.5% ± 1.9%
77,000
25.4% ± 2.6% **
172,000
41% ± 2.9% **
277,000
47.4% ± 3% **
320,000
51% ± 3% **
345,000
676,000
Alaska
11.2% ± 2.5%
6,000
20.4% ± 3.2%
10,000
33.9% ± 3.8%
17,000
40.5% ± 3.9%
20,000
43.7% ± 4%
22,000
50,000
Arizona
7.5% ± 1.8% *
53,000
13.5% ± 2.4% *
95,000
25.8% ± 3% *
182,000
30.8% ± 3.2% *
217,000
33.6% ± 3.2% *
237,000
705,000
Arkansas
13% ± 2% **
63,000
26.9% ± 2.6% **
130,000
40.4% ± 2.9% **
195,000
47% ± 2.9% **
227,000
50% ± 2.9% **
242,000
484,000
California
9.9% ± 1%
361,000
17.8% ± 1.3% *
649,000
34.3% ± 1.6%
1,251,000
40.6% ± 1.7% ** 1,481,000
44% ± 1.7% ** 1,603,000
3,646,000
Colorado
9.8% ± 1.8%
47,000
17.6% ± 2.3%
85,000
29.3% ± 2.8% *
142,000
34.8% ± 2.9% *
168,000
37.6% ± 3% *
182,000
483,000
Connecticut
5.7% ± 1.2% *
30,000
13% ± 1.7% *
69,000
23.4% ± 2.2% *
125,000
28.1% ± 2.3% *
150,000
30.9% ± 2.4% *
165,000
535,000
Delaware
7.6% ± 1.5% *
9,000
14.7% ± 2% *
17,000
27.1% ± 2.5% *
31,000
31.9% ± 2.6% *
37,000
35.6% ± 2.7% *
41,000
114,000
DC
19.4% ± 3.1% **
14,000
32.3% ± 3.7% **
23,000
44.9% ± 3.9% **
32,000
49.3% ± 3.9% **
35,000
51.5% ± 3.9% **
37,000
72,000
Florida
9.1% ± 0.9%
268,000
18.7% ± 1.3%
548,000
32.4% ± 1.5%
953,000
38.4% ± 1.6%
1,128,000
41.6% ± 1.6%
1,220,000
2,936,000
Georgia
10.9% ± 2.2%
98,000
24.3% ± 3% **
218,000
39.2% ± 3.4% **
352,000
45.9% ± 3.5% **
412,000
48.1% ± 3.5% **
432,000
898,000
Hawaii
15.8% ± 2.2% **
26,000
23.4% ± 2.6% **
39,000
35.7% ± 3%
60,000
39.5% ± 3.1%
66,000
42.7% ± 3.1%
71,000
167,000
Idaho
5.1% ± 1.5% *
8,000
12.7% ± 2.3% *
21,000
25.5% ± 3% *
42,000
32.2% ± 3.3% *
52,000
34.5% ± 3.3% *
56,000
163,000
Illinois
9.7% ± 1.3%
155,000
17.9% ± 1.6%
285,000
31.4% ± 2%
501,000
37.6% ± 2.1%
599,000
40.8% ± 2.1%
650,000
1,592,000
Indiana
8.2% ± 1.4% *
72,000
15.6% ± 1.9% *
137,000
31.9% ± 2.4%
281,000
37.6% ± 2.5%
331,000
41.4% ± 2.6%
364,000
880,000
Iowa
7.5% ± 1.5% *
33,000
14.9% ± 2% *
65,000
26.7% ± 2.4% *
117,000
31.3% ± 2.6% *
137,000
35.3% ± 2.6% *
155,000
439,000
Kansas
5.6% ± 1.3% *
23,000
14.8% ± 2% *
61,000
30.6% ± 2.6%
125,000
36% ± 2.7%
148,000
39% ± 2.7% *
160,000
409,000
Kentucky
11.2% ± 1.9%
68,000
21.5% ± 2.4%
130,000
35.6% ± 2.8%
216,000
42.4% ± 2.9% **
257,000
46.2% ± 3% **
279,000
605,000
Louisiana
12.7% ± 2.2% **
76,000
24.8% ± 2.9% **
148,000
42.1% ± 3.3% **
251,000
47.1% ± 3.3% **
281,000
51% ± 3.3% **
304,000
596,000
Maine
9.4% ± 1.4%
22,000
20.7% ± 1.9%
48,000
37.3% ± 2.3% **
86,000
44.3% ± 2.4% **
102,000
49.2% ± 2.4% **
114,000
231,000
Maryland
9.4% ± 1.7%
64,000
18.2% ± 2.3%
124,000
29.6% ± 2.7% *
201,000
33.6% ± 2.8% *
229,000
36.6% ± 2.8% *
249,000
681,000
Massachusetts
8.6% ± 1.5%
76,000
18.5% ± 2%
164,000
31.6% ± 2.4%
279,000
38.2% ± 2.5%
337,000
42.9% ± 2.6%
379,000
883,000
Michigan
8.1% ± 1.2% *
108,000
17.7% ± 1.7%
237,000
29.1% ± 2% *
391,000
35% ± 2.1% *
469,000
39.1% ± 2.2% *
524,000
1,341,000
Minnesota
7.3% ± 1.7% *
39,000
14.3% ± 2.2% *
76,000
26.4% ± 2.8% *
140,000
30.5% ± 2.9% *
163,000
34.8% ± 3% *
186,000
533,000
Mississippi
12.5% ± 2.3% **
49,000
31.3% ± 3.2% **
122,000
45.5% ± 3.4% **
178,000
51.2% ± 3.4% **
200,000
54.2% ± 3.4% **
212,000
390,000
Missouri
5.8% ± 1.4% *
43,000
15.1% ± 2.1% *
111,000
26.1% ± 2.6% *
193,000
31.7% ± 2.7% *
233,000
35.8% ± 2.8% *
264,000
737,000
Montana
5.6% ± 1.4% *
8,000
15.4% ± 2.3% *
22,000
28.5% ± 2.9% *
42,000
36.3% ± 3.1%
53,000
38.6% ± 3.1% *
56,000
146,000
Nebraska
8.6% ± 1.8%
19,000
16.6% ± 2.4% *
37,000
28.5% ± 2.9% *
64,000
35.8% ± 3%
80,000
39.7% ± 3.1%
89,000
224,000
Nevada
7.1% ± 1.6% *
18,000
15.2% ± 2.2% *
39,000
27.7% ± 2.8% *
71,000
33.5% ± 2.9% *
85,000
37.4% ± 3% *
95,000
255,000
New Hampshire
6% ± 1.3% *
11,000
12.7% ± 1.9% *
23,000
25% ± 2.4% *
45,000
32.2% ± 2.6% *
58,000
36.3% ± 2.7% *
65,000
179,000

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CRS-5
Below 74% of poverty
Below 100% of poverty
Below 135% of poverty
Below 150% of poverty
Below 160% of poverty
Total avg
number of
Percentage
Number
Percentage
Number
Percentage
Number
Percentage
Number
Percentage
Number
State
beneficiaries
New Jersey
9.1% ± 1.2%
117,000
17.5% ± 1.6% *
224,000
29.3% ± 2% *
376,000
34.7% ± 2.1% *
446,000
37.8% ± 2.1% *
486,000
1,283,000
New Mexico
15.5% ± 2.5% **
43,000
25.3% ± 3.1% **
70,000
39% ± 3.5% **
108,000
43.6% ± 3.5% **
121,000
47.1% ± 3.5% **
130,000
277,000
New York
10.6% ± 1%
282,000
22.5% ± 1.3% **
597,000
35.1% ± 1.5% **
930,000
41.3% ± 1.6% ** 1,095,000
44.4% ± 1.6% ** 1,178,000
2,650,000
North Carolina
14.4% ± 1.7% **
169,000
26.5% ± 2.2% **
311,000
41.3% ± 2.4% **
484,000
45.5% ± 2.5% **
533,000
48.6% ± 2.5% **
569,000
1,171,000
North Dakota
7.4% ± 1.5% *
7,000
16.9% ± 2.2% *
16,000
31.1% ± 2.7%
29,000
37.3% ± 2.8%
35,000
43.4% ± 2.9%
40,000
93,000
Ohio
8.2% ± 1.2% *
130,000
15.7% ± 1.5% *
248,000
29.1% ± 1.9% *
459,000
34.6% ± 2% *
545,000
37.3% ± 2.1% *
589,000
1,577,000
Oklahoma
8.8% ± 1.7%
44,000
19.3% ± 2.4%
97,000
33.4% ± 2.9%
167,000
37.8% ± 2.9%
189,000
41.3% ± 3%
207,000
501,000
Oregon
6.8% ± 1.5% *
31,000
15.2% ± 2.2% *
70,000
28.5% ± 2.8% *
131,000
33.2% ± 2.9% *
152,000
36.5% ± 3% *
168,000
459,000
Pennsylvania
7.1% ± 0.9% *
134,000
15.9% ± 1.4% *
299,000
29% ± 1.7% *
547,000
34.7% ± 1.8% *
656,000
38.3% ± 1.8% *
723,000
1,888,000
Rhode Island
6.8% ± 1.2% *
12,000
18.9% ± 1.9%
33,000
33.9% ± 2.3%
59,000
40.7% ± 2.4%
71,000
43.2% ± 2.4%
75,000
174,000
South Carolina
15.9% ± 2.1% **
103,000
27.8% ± 2.5% **
179,000
42.2% ± 2.8% **
273,000
47% ± 2.8% **
304,000
50.2% ± 2.8% **
325,000
646,000
South Dakota
7.3% ± 1.4% *
8,000
15.6% ± 2% *
18,000
32.5% ± 2.6%
37,000
37.7% ± 2.7%
43,000
41.2% ± 2.7%
47,000
113,000
Tennessee
12.7% ± 2.2% **
98,000
25.9% ± 2.9% **
199,000
43% ± 3.3% **
331,000
48.8% ± 3.3% **
375,000
53.4% ± 3.3% **
411,000
769,000
Texas
11.9% ± 1.3% **
274,000
24.1% ± 1.8% **
557,000
38.5% ± 2% **
888,000
43.9% ± 2.1% ** 1,015,000
47.1% ± 2.1% ** 1,088,000
2,310,000
Utah
8.5% ± 2.2%
16,000
17.4% ± 3%
33,000
27.1% ± 3.5% *
52,000
31.4% ± 3.7% *
60,000
34.7% ± 3.8% *
67,000
192,000
Vermont
9.5% ± 1.7%
8,000
20% ± 2.3%
17,000
35.9% ± 2.8% **
30,000
42.6% ± 2.9% **
36,000
45.7% ± 2.9% **
39,000
85,000
Virginia
9.4% ± 1.8%
86,000
19.4% ± 2.4%
178,000
32.5% ± 2.9%
298,000
39.5% ± 3%
362,000
43.3% ± 3%
397,000
917,000
Washington
8.8% ± 1.8%
66,000
15.5% ± 2.3% *
116,000
24.5% ± 2.8% *
184,000
29.5% ± 2.9% *
220,000
32.7% ± 3% *
244,000
748,000
West Virginia
9.9% ± 1.5%
34,000
21% ± 2%
73,000
35.6% ± 2.4% **
123,000
41.3% ± 2.4% **
143,000
45.8% ± 2.5% **
159,000
346,000
Wisconsin
7.9% ± 1.4% *
60,000
15.1% ± 1.9% *
116,000
24.7% ± 2.3% *
189,000
30.6% ± 2.5% *
234,000
35.1% ± 2.6% *
269,000
766,000
Wyoming
8.6% ± 1.7%
6,000
16% ± 2.3% *
10,000
30.1% ± 2.9%
19,000
37.3% ± 3.1%
24,000
41.9% ± 3.2%
27,000
65,000
United States
9.6% ± 0.2%
3,672,000 19.3% ± 0.3%
7,366,000
33% ± 0.4%
12,551,000 38.7% ± 0.4%
14,735,000 42.1% ± 0.4%
16,032,000
38,077,000
Source: Table prepared by the Congressional Research Service based on data from the March supplement of the Current Population Survey, 2001-2003.
Note: Income is determined based on the definition of countable income for Supplemental Security Income, not by total family income. The Department of Health and Human Services’ federal
poverty guidelines are used rather than the Census Bureau’s federal poverty threshold. The range given for the percentages reflect the 90% confidence interval. These demonstrate that, because
the estimates are based on a portion of the entire Medicare population, the estimates are subject to variability. The size of the confidence intervals depends primarily on sample size. A 90%
confidence interval means that if all possible samples were surveyed under the same sample design and general conditions, the estimated percentage in each income category would lie within
the confidence interval 9 out of 10 times. The number of beneficiaries is based on the corresponding percentage point estimate. The number of beneficiaries is subject to the same kind of
variability as the percentage, but the 90% confidence interval is not provided because of space constraints.
* Indicates percentage of beneficiaries is statistically lower than the national rate, at the 90% confidence level.
** Indicates the percentage of beneficiaries is statistically higher than the national rate, at the 90% confidence level.

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CRS-6
Source of Data. The state-by-state percentages presented in this report were
calculated using the March supplement of the Current Population Survey (CPS). The
CPS March supplement is a survey of approximately 99,000 households selected to be
demographically representative of the civilian noninstitutionalized population of the
United States. The analyses in this report were based on data from the CPS for 2000,
2001 and 2002. The sample sizes available for many states are small, especially when
examining a subset of the sample like Medicare beneficiaries over the age of 65. Small
sample sizes increase the likelihood that the characteristics of the survey participants
differ from the characteristics of the population they are meant to represent, which is
known as sampling error. To increase the reliability of state-level estimates, multiple-
year estimates were calculated.
Income Defined.
In H.R. 1 and S. 1, income is counted according to
Supplemental Security Income (SSI) eligibility guidelines. As a result, appropriately
estimating the number of individuals who may be eligible for assistance under these bills
requires a more in-depth analysis than simply looking at individuals’ or families’ reported
total income. The estimates of income used in this report were obtained by taking
respondents’ total income as reported in the CPS and subtracting from it the amounts and
types of income specified according to SSI eligibility rules as follows.
Income was divided into two categories — earned income, which consists of the CPS
variables for wages and self-employment earnings, and unearned income. The CPS
gathers information on 17 types of unearned income. Two of these are not considered
income for SSI purposes: education assistance and child support payments.1 The amount
of countable unearned income was reduced by up to $240 per year ($20 per month). If
that maximum amount was not reached (that is, if unearned income was less than $240
for the year), then the remainder of the $240 disregard was subtracted from earned
income.2 Countable earned income was reduced by an additional $780 per year ($65 per
month). Once the remaining countable earned income was calculated, if there was any
left, half of it was subtracted, and the amount that remained was counted as earned
income. The couple’s or individual’s countable earned and unearned incomes were then
added together and compared to the federal poverty guidelines.
Poverty Defined. The poverty guidelines are published by the Department of
Health and Human Services and are used primarily for determining eligibility for many
federal programs, which is why the guidelines are used in this analysis. The poverty
thresholds, although more commonly used for poverty-related analyses, are a different
measure of poverty updated by the Census Bureau, used primarily for statistical purposes.
The 2003 poverty guidelines for an individual living alone in the 48 contiguous states are
$8,980; for a family of two, the guideline is $12,120. In Alaska, the guidelines are
$11,210 for an individual living alone and $15,140 for a family of two. In Hawaii, the
guidelines are $10,330 for an individual living alone and $13,940 for a family of two.
1 Child support payments only count as income under SSI when determining eligibility for a child
for whom those payments are received.
2 SSI, public assistance welfare, disability payments and financial assistance payments are
considered unearned income when calculating total income. However, they are excluded when
calculating how much of the $240 disregard a beneficiary will receive. The CPS variable for
“financial assistance payments” is assumed to be state or nonprofit assistance.

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