National Grange

President Bush signed into law the Medicare Prescription Drug and Modernization Act of 2003 on December 8, 2003. The new law adds a prescription drug benefit to Medicare. The comprehensive prescription drug benefit program will commence in 2006.

In the interim, starting in May 2004 and ending December 31, 2005, Medicare-approved drug discount cards will be available for immediate saving on prescription drugs. Medicare will contract with private companies to offer new, voluntary drug discount cards. A Medicare-approved discount card will offer either a discount off the full retail price or a flat fee for prescription drugs.

All Medicare recipients are eligible with the exception of those who have outpatient prescription drug benefits under state Medicaid programs, those with benefits under military or federal government insurance and those with prescription drug benefits under private employer or retiree plans.

A key part of the Medicare-approved prescription drug discount program is a subsidy of up to $600 a year for those whose income is less than 135% of poverty. In 2004 that will be $12,124 for singles and $16,363 for married couples.

The United States Department of Health and Human Services (HHS) estimates that 7.3 million Americans will participate in the Medicare-approved prescription drug discount card program and realize a total savings of $2.4 billion in 2004 and $2.6 billion in 2005. Beneficiaries are expected to save 10 to 15 percent on their total drug spending and 25 percent or more on individual prescription drugs.

The key to realizing maximum savings is to choose the right card! There will be a least 28 cards available. The cards will not all be the same. Each card must provide access to negotiated prices on at least one prescription drug in each of the therapeutic drug classes, groups and sub-groups provided by the Centers for Medicare and Medicaid Service (CMS). There are over 200 categories! Cards will have different drugs and different prices for each category. Prices may vary by geographic location. Not all pharmacies will honor all cards. Thus, the Medicare beneficiaries are going to have to figure out which card offers the lowest prices in their location and at their pharmacy.

CMS will provide a website where price comparisons can be made, and CMS will have an 800 number for answering questions. Many seniors are not computer savvy or may not have access to the Internet, especially in rural America. It is unclear as to whether the people answering the 800 number will actually help choose the best card for individual Medicare beneficiaries.

Given these circumstances, the National Grange has approached a major U.S. pharmaceutical company for funding of a Medicare-approved discount drug card education program with the following objectives.

Make qualified beneficiaries aware that they are eligible for Medicare-approved drug discount cards. While HHS estimates 7.3 million seniors will take advantage of the card program, this is from an estimated 15.4 million who are eligible for the card or the card and the $600.00 subsidy.
Educate families, not just individuals. The daunting task of figuring out just which card is best for a Medicare beneficiary very well may fall upon that individual's children.
Teach potential beneficiaries the right questions to ask and the right sources of information in order for them to make the best decision.

This will be an extensive grassroots education and outreach program to Grange members and their communities. The Grange will become an informational focal point regarding Medicare-approved prescription drug discount cards for rural citizens.

For more information on this program, please contact the National Grange at 1-888-447-2643 or info@nationalgrange.org.