Summary: GAO's analysis of 1992 data found that 17.5 percent of nearly 30 million Medicare recipients were still being prescribed drugs that were generally unsuitable for their age group. Although this is an improvement over the almost 25 percent reported for 1987 data, the inappropriate use of prescription drugs remains a major health problem for the elderly. Insufficient coordination of patient drug therapies and weaknesses in communication between providers, pharmacists, and patients have compounded the problem. Inappropriate prescribing practices and the ensuing drug use have caused many elderly persons to suffer harmful effects that, according to the Food and Drug Administration, have resulted in hospitalizations costing $20 billion annually. The costs are partly covered by Medicare and Medicaid. States, advocacy groups, and physician and pharmacy organizations have, however, taken steps to reduce inappropriate drug use. In addition, managed care, pharmacy benefit management, and other coordinated health care systems have features designed to reduce inappropriate prescription drug use among the elderly.