Medical Expenditure Panel Survey 

Agency for Healthcare 

Research and Quality

STATISTICAL BRIEF #200 

Highlights 

 Comparing 2000 with 2005, for 

persons with a prescribed drug 

purchase, the proportion of 

persons buying at least one 

drug by mail order increased 

(from 8.8 to 13.2 percent) while 

the proportion of persons 

buying at least one drug at a 

drug store; an HMO, clinic, or 

hospital; and in another store all 

decreased (65.1 to 60.9 

percent; 15.2 to 12.9 percent; 

and 31.6 to 28.2 percent, 

respectively). 

 During 2005, among persons 

with a prescribed drug purchase 

by mail order, the 

representation of people over 

age 65 (37.1 percent) was 

higher relative to persons 

purchasing at least one drug 

from a drug store (17.2 

percent); an HMO, clinic or 

hospital (20.6 percent); and 

another store (20.8 percent). 

 Of persons with at least one 

prescribed drug purchase by 

mail order in 2005, white, nonHispanics accounted for a 

larger proportion (87.6 percent) 

relative to persons buying at 

least one drug from a drug store 

(72.8 percent); an HMO, clinic, 

or hospital (61.2 percent); and 

another store (80.2 percent).

 In 2005, of those with a 

prescribed drug purchase by 

mail order, persons with private 

insurance accounted for a 

higher representation (86.6 

percent) compared with 

individuals purchasing at least 

one prescribed medicine from a 

drug store (72.4 percent); an 

HMO, clinic, or hospital (64.6 

percent); and another store 

(76.1 percent). 

 During 2005, of the population 

with a prescribed drug purchase 

by mail order, there was a 

higher representation of 

persons reporting at least one 

chronic condition (74.7 percent) 

relative to persons buying at 

least one drug from a drug store 

(50.7 percent); an HMO, clinic, 

or hospital (55.5 percent); and 

another store (53.2 percent). 

February 2008 

Comparing Population Characteristics 

of Persons Purchasing Prescribed 

Drugs from Mail Order Pharmacies with 

Persons Purchasing Prescribed Drugs 

from Other Outlets, 2005 

Marie N. Stagnitti, MPA 

Introduction 

This Statistical Brief provides information as reported by households 

in the U.S. civilian noninstitutionalized (community) population for 

calendar years 2000 and 2005 on the proportion of persons who 

purchased at least one prescribed medicine at the following types of 

pharmacies: mail order; drug store; HMO, clinic, or hospital; and 

another store (e.g., grocery store, etc.). This brief also compares 

person characteristics of those persons with a prescribed medicine 

expense purchasing at least one drug from a mail order pharmacy 

with the person characteristics of those purchasing at least one drug 

from a drug store; an HMO, clinic, or hospital; and another store in 

calendar year 2005. 

The estimates in this brief are derived from the Household 

Component of the 2000 and the 2005 Medical Expenditure Panel 

Survey (MEPS-HC). Only prescribed medicines purchases in an 

outpatient setting are included in the estimates. Insulin and diabetic 

supplies and equipment are included in MEPS prescribed medicines 

estimates. Over-the-counter medicines are excluded from these 

estimates as are prescription medicines administered in an inpatient 

setting or in a clinic or physician’s office. All differences discussed in 

the text are statistically significant at the 0.05 percent level. 

The pharmacy type variable in the MEPS-HC is a person-level 

variable and is linked to a person and is not linked to prescribed 

medicine purchases. There is no limit on the number of pharmacies 

a person can report in the MEPS-HC. 

Findings 

In 2000, there were 173.3 million persons in the U.S. civilian 

noninstitutionalized population that purchased prescribed drugs, and 

in 2005, there were 187.0 million persons in the U.S. civilian 

noninstitutionalized population that purchased prescribed drugs. 

Comparing 2000 to 2005 for those persons with a prescribed drug 

purchase, the proportion of persons buying at least one drug from a 
mail order pharmacy increased from 8.8 percent to 13.2 percent, while the proportion of persons 

purchasing at least one drug from a drug store; an HMO, clinic, or hospital; and another store (e.g., 

grocery stores, etc.) all decreased (65.1 percent to 60.9 percent; 15.2 percent to 12.9 percent; and 31.6 

percent to 28.2 percent, respectively) (figure 1). 

In 2005, of those with at least one prescribed drug purchase by mail order, there was a lower 

representation of persons under age 65 (62.9 percent) relative to persons with at least one drug purchase 

from a drug store (82.8 percent); an HMO, clinic or hospital (79.4 percent); and another store (79.3 

percent). In comparison, of those with at least one prescribed drug purchase by mail order, there was a 

higher representation of persons age 65 and older (37.1 percent) relative to persons buying at least one 

drug from a drug store (17.2 percent); an HMO, clinic, or hospital (20.6 percent); and another store (20.8 

percent) (figure 2). 

Of those with at least one prescribed drug purchase by mail order in 2005, white, non-Hispanics had a 

higher representation (87.6 percent) relative to persons purchasing at least one drug from a drug store 

(72.8 percent); an HMO, clinic, or hospital (61.2 percent); and another store (80.2 percent). Moreover, 

among persons with a drug purchase by mail order, black, non-Hispanics and Hispanics had a lower 

representation (4.8 percent and 3.9 percent, respectively) relative to persons with a drug purchase at a 

drug store (11.4 percent and 10.9 percent); an HMO, clinic, or hospital (12.8 percent and 15.1 percent); 

and other store (6.7 percent and 8.3 percent) (figure 3). 

During 2005, the population with at least one prescribed drug purchase by mail order had a higher 

representation of males (43.7 percent) compared with persons buying at least one drug from another 

store (40.8 percent) but accounted for a lower representation relative to persons buying at least one drug 

from an HMO, clinic, or hospital (47.3 percent). In comparison, of the population with a prescribed drug 

purchase by mail order in 2005, females accounted for a higher representation (56.3 percent) relative to 

the population buying at least one drug from an HMO, clinic, or hospital (52.7 percent) but accounted for 

a lower representation relative to the population buying at least one drug from another store (59.2 

percent) (figure 4). 

Of those with at least one prescribed drug purchase by mail order in 2005, persons with any private 

insurance accounted for a higher representation (86.6 percent) relative to those persons buying at least 

one drug from a drug store (72.4 percent); an HMO, clinic or hospital (64.6 percent); and another store 

(76.1 percent). In comparison, of those with at least one prescribed drug purchase by mail order in 2005, 

persons with public insurance only and the uninsured accounted for lower representations (10.6 percent 

and 2.8 percent, respectively) compared with the population buying at least one drug from a drug store 

(21.1 percent and 6.6 percent, respectively); an HMO, clinic, or hospital (23.4 percent and 12.0 percent, 

respectively); and another store (17.8 percent and 6.0 percent, respectively) (figure 5). 

In 2005, of those with at least one prescribed drug purchase by mail order, those with middle and high 

incomes accounted for a higher representation (82.9 percent) relative to persons purchasing at least one 

drug from a drug store (70.3 percent); an HMO, clinic, or hospital (65.0 percent); and another store (73.7 

percent). Moreover, of those with a prescribed drug purchase in 2005 by mail order, those that were 

poor, and those that were near poor or had low income accounted for smaller representations (5.4 

percent and 11.8 percent, respectively) compared with the populations buying at least one drug from a 

drug store (12.6 percent and 17.1 percent, respectively); an HMO, clinic, or hospital (14.1 percent and 

21.0 percent); and another store (9.4 percent and 16.9 percent, respectively) (figure 6). 

 

Among those persons with at least one mail order prescribed medicine purchase in 2005, there was a 

higher representation of people in excellent, very good, or good health (82.6 percent) and a lower 

representation of persons in fair or poor heath (17.4 percent) relative to those buying at least one drug 

from an HMO, clinic, or hospital (79.4 percent and 20.6 percent, respectively) (figure 7). 

During 2005, of those with at least one prescribed drug purchase by mail order, the proportion reporting 

having at least one chronic condition was higher (74.7 percent) relative to persons with at least one drug 

purchase from a drug store (50.7 percent); an HMO, clinic, or hospital (55.5 percent); and another store 

(53.2 percent) (figure 8). 
Data Source 

The estimates in this Statistical Brief were derived from the MEPS HC-050: 2000 Full Year Consolidated 

Data File; HC-097: 2005 Full Year Consolidated Data File; HC-051A: 2000 Prescribed Medicines File; 

and HC-094A: 2005 Prescribed Medicines File. 

Definitions/Methodology 

Type of pharmacy 

The pharmacy type variable in the MEPS-HC is a person-level variable and is linked to a person and is 

not linked to prescribed drug purchases. There is no limit on the number of pharmacies a person can 

report in the MEPS-HC. 

Age 

Age is the last available age for the sampled person. For most persons, this was their age at the end of 

the year. 

Racial and ethnic classifications 

Classification by race and ethnicity was based on information reported for each family member. 

Respondents were asked if each family member's race was best described as American Indian, Alaska 

Native, Asian or Pacific Islander, black, white, or other. They also were asked if each family member's 

main national origin or ancestry was Puerto Rican; Cuban; Mexican, Mexicano, Mexican American, or 

Chicano; other Latin American; or other Spanish. All persons whose main national origin or ancestry was 

reported in one of these Hispanic groups, regardless of racial background, were classified as Hispanic. 

Since the Hispanic grouping can include black Hispanic, white Hispanic, Asian and Pacific Islanders 

Hispanic, and other Hispanic, the race categories of black, white, Asian and Pacific Islanders, and other 

do not include Hispanic. Beginning in 2002, MEPS respondents were allowed to report multiple races, 

and these persons were included in the other non-Hispanic category. As a result, there was a slight 

increase in the percentage of persons classified in this category in 2002 compared with prior years. 

Health insurance status 

– Any private health insurance: Individuals with insurance that provides coverage for hospital and 

physician care at any time during the year, other than Medicare, Medicaid, or other public 

hospital/physician coverage, are classified as having private insurance. Medigap coverage is included 

in this category. Persons with TRICARE are also included. Insurance that provides coverage for a 

single service only, such as dental or vision, is not included. 

– Public coverage only: Individuals are considered to have public coverage only if they met both of the 

following criteria: 1) They were not covered by private insurance at any time during the year; 2) They 

were covered by one of the following public programs at any point during the year: Medicare, 

Medicaid, or other public hospital/physician coverage. 

– Uninsured: The uninsured are defined as persons not covered by Medicare, TRICARE, Medicaid, 

other public hospital/physician programs, or private hospital/physician insurance at any time during 

2005. Individuals covered only by noncomprehensive State-specific programs (e.g., Maryland Kidney 

Disease Program, Colorado Child Health Plan) or private single-service plans (e.g., coverage for 

dental or vision care only, coverage for accidents or specific diseases) are not considered to be 

insured. 

Poverty status 

Each year, persons were classified according to their family’s income in terms of poverty status. In this 

report, poverty status is the ratio of the family’s income to the Federal poverty thresholds, which control 

for the size of the family and the age of the head of the family. The following classification of poverty 

status was used: 

– Poor: Persons in families with income less than 100 percent of the poverty line, including those who 

reported negative income. 

– Near poor/low income: Persons in families with income of 100 percent of the poverty line through 200 

percent of the poverty line. 

– Middle income/high income: Persons in families with income over 200 percent of the poverty line. 
Perceived health status 

During each round of interviewing, the household respondent was asked to rate the health of each person 

in the family according to the following categories: excellent, very good, good, fair, or poor. For this report, 

the response categories “excellent,” “very good,” and “good” were collapsed, as were “fair” and “poor.” 

Chronic condition indicator 

The indicator for chronic conditions was drawn from variables indicating presence of the following chronic 

conditions: arthritis, active asthma, diabetes, emphysema, high blood pressure, ischemic heart disease 

(coronary heart disease, angina, heart attack, or any other heart related disease), and stroke. For each of 

the conditions listed, the following question was asked: “(Have/Has) PERSON ever been told by a doctor 

or other health professional that PERSON had [condition].” For asthma, those with an affirmative answer 

were further asked: “(Do/Does) (PERSON) still have asthma?” In this Statistical Brief, only those with 

active asthma (those who answered affirmatively to the follow-up question) are included among those 

with chronic conditions. 

About MEPS-HC 

MEPS-HC is a nationally representative longitudinal survey that collects detailed information on health 

care utilization and expenditures, health insurance, and health status, as well as a wide variety of social, 

demographic, and economic characteristics for the civilian noninstitutionalized population. It is 

cosponsored by the Agency for Healthcare Research and Quality and the National Center for Health 

Statistics. 

For more information about MEPS, call the MEPS information coordinator at AHRQ (301-427-1656) or 

visit the MEPS Web site at http://www.meps.ahrq.gov/. 

References 

For a detailed description of the MEPS-HC survey and sample design, and methods used to minimize 

sources on nonsampling error, see the following publications: 

Cohen J. Design and Methods of the Medical Expenditure Panel Survey Household Component. MEPS 

Methodology Report No. 1. AHCPR Pub. No. 97-0026. Rockville, MD: Agency for Healthcare Policy and 

Research, 1997. http://www.meps.ahrq.gov/mepsweb/data_files/publications/mr1/mr1.shtml 

Cohen S. Sample Design of the 1996 Medical Expenditure Panel Survey Household Component. MEPS 

Methodology Report No. 2. AHCPR Pub. No. 97-0027. Rockville, MD: Agency for Healthcare Policy and 

Research, 1997. http://www.meps.ahrq.gov/mepsweb/data_files/publications/mr2/mr2.shtml 

Cohen, S. Design Strategies and Innovations in the Medical Expenditure Panel Survey. Medical Care, 

July 2003: 41(7) Supplement: III-5–III-12. 

Suggested Citation 

Stagnitti, M. N. Comparing Population Characteristics of Persons Purchasing Prescribed Drugs from Mail 

Order Pharmacies with Persons Purchasing Prescribed Drugs from Other Outlets, 2005. Statistical Brief 

#200. February 2008. Agency for Healthcare Research and Quality, Rockville, MD. 

http://www.meps.ahrq.gov/mepsweb/data_files/publications/st200/stat200.pdf 

# # # 

AHRQ welcomes questions and comments from readers of this publication who are interested in 

obtaining more information about access, cost, use, financing, and quality of health care in the United 

States. We also invite you to tell us how you are using this Statistical Brief and other MEPS data and 

tools and to share suggestions on how MEPS products might be enhanced to further meet your needs. 

Please e-mail us at mepspd@ahrq.gov or send a letter to the address below: 

Steven B. Cohen, PhD, Director 

Center for Financing, Access, and Cost Trends 

Agency for Healthcare Research and Quality 

540 Gaither Road 

Rockville, MD 20850 
12.9

28.2 31.6

15.2

65.1

8.8

13.2

60.9

0

25

50

75

100

Mail order Drug store HMO/clinic/hospital Other store

2000 2005

Percentage

Figure 1. For those with a prescribed drug purchase, 

the percentage with at least one drug purchase by 

type of pharmacy, 2000 and 2005 

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 

2000 and 2005.

79.4 79.3

37.1

20.6 20.8

62.9

82.8

17.2

0

25

50

75

100

Mail order Drug store HMO/clinic/hospital Other store

under age 65 age 65 and older

Percentage

Figure 2. Percentage of those with a prescribed drug

purchase by pharmacy type and age, 2005

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 

2005.

Statistical Brief #200: Comparing Population Characteristics of Persons Purchasing Prescribed Drugs 

from Mail Order Pharmacies with Persons Purchasing Prescribed Drugs from Other Outlets, 2005 
61.2

80.2 72.8

87.6

11.4

4.8

6.7

12.8

10.9

3.9

15.1

8.3

3.7 5.0 4.9 10.8

0

25

50

75

100

Mail order Drug store HMO/clinic/hospital Other store

white, non Hispanic black, non Hispanic Hispanic other non Hispanic

Percentage

Figure 3. Percentage of those with a prescribed drug 

purchase by pharmacy type and race, 2005

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 

2005.

 

47.3 40.8

58.1 52.7 59.2

43.7 41.9

56.3

0

25

50

75

100

Mail order Drug store HMO/clinic/hospital Other store

male female

Percentage

Figure 4. Percentage of those with a prescribed drug 

purchase by pharmacy type and sex, 2005

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 

2005.

Statistical Brief #200: Comparing Population Characteristics of Persons Purchasing Prescribed Drugs 

from Mail Order Pharmacies with Persons Purchasing Prescribed Drugs from Other Outlets, 2005 
64.6

76.1

10.6

23.4

17.8

86.6

72.4

21.1

2.8 6.6 12.0 6.0

0

25

50

75

100

Mail order Drug store HMO/clinic/hospital Other store

any private public only uninsured

Percentage

Figure 5. Percentage of those with a prescribed drug 

purchase by pharmacy type and insurance status, 2005

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 

2005.

14.1 9.4

21.0

16.9

70.3 65.0

73.7

12.6 5.4

17.1

11.8

82.9

0

25

50

75

100

Mail order Drug store HMO/clinic/hospital Other store

poor near poor/low income middle/high income

Percentage

Figure 6. Percentage of those with a prescribed drug 

purchase by pharmacy type and poverty status, 2005

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 

2005.

Statistical Brief #200: Comparing Population Characteristics of Persons Purchasing Prescribed Drugs 

from Mail Order Pharmacies with Persons Purchasing Prescribed Drugs from Other Outlets, 2005 
83.7 79.4 85.0

17.4 20.6 15.0

82.6

16.3

0

25

50

75

100

Mail order Drug store HMO/clinic/hospital Other store

excellent/very good/good fair/poor

Percentage

Figure 7. Percentage of those with a prescribed drug 

purchase by pharmacy type and health status, 2005

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 

2005.

50.7 55.5 53.2

25.4

44.5 46.8

74.7

49.3

0.0

25.0

50.0

75.0

100.0

Mail order Drug store HMO/clinic/hospital Other store

yes no

Percentage

Figure 8. For those with a prescribed drug purchase by 

pharmacy type and chronic condition indicator, 2005

Source: Center for Financing, Access, and Cost Trends, AHRQ, Household Component of the Medical Expenditure Panel Survey, 

2005.

Statistical Brief #200: Comparing Population Characteristics of Persons Purchasing Prescribed Drugs 

from Mail Order Pharmacies with Persons Purchasing Prescribed Drugs from Other Outlets, 2005