We propose to investigate whether expanded drug coverage provided by the Part D program reduced hospitalizations.  Our basic notion is that drug coverage was more prevalent in some geographic areas than in others prior to Part D.  Thus some areas were more affected by Part D than others.  Our goal will be to assess whether the areas most affected by Part D had greater changes in admissions overall and for diagnoses potentially amenable to drug coverage, compared to areas less affected by Part D.  We will control for unobserved area trends by examining admission rate changes in the same areas, over the same study period, for individuals 60 – 65, who are largely not impacted by the Part D program.  Our analyses will combine data from the Current Population Survey on prescription drug insurance coverage among Medicare beneficiaries before and after the introduction of the Part D benefit with hospital discharge data from the Healthcare Cost and Utilization Project sponsored by the Agency for Healthcare Research and Quality.