|
 The
Medicare Prescription Drug Discount Card Program was enacted into law on December
8, 2003 as part of the Medicare Modernization Act of 2003. In 2004, 7.3 million
people with Medicare are expected to enroll in the program, and save between $1.4
billion and $1.8 billion in discounts on their prescriptions. Recently, U.S. Health
and Human Services (HHS) Department Secretary Tommy G. Thompson announced the
approval of 28 private sponsors to provide seniors and people with disabilities
savings on their prescription drugs. See
the detail The prescription drug discount cards mark the first stage of a
planned Medicare prescription drug benefit. Beginning this June, these cards will
provide between 10 percent and 25 percent discounts off the regular cash price
of prescriptions. However, this program is not intended to be a prescription drug
benefit, but rather a measure to help people until the drug benefit is implemented
on January 1, 2006. The
National Grange recently joined former Senator Bob Dole in kicking off his national
speaking tour to discuss the new Medicare drug law benefiting America's seniors
and people living with disabilities. Related
press release In the next few months, the Grange will also be working on a
special education campaign, in conjunction with Pfizer Pharmaceuticals, to make
sure its members are fully educated about their new options. The
following is a fact sheet for the Medicare Drug Discount Card Program. Fact
1. Two new options for people with Medicare: (1) Medicare-approved drug discount
cards and (2) a $600 credit to pay for prescriptions Fact
2. Cards are for anyone with Medicare, except people who already have drug coverage
from Medicaid. People
are eligible for a discount drug card if they are enrolled under Medicare Part
A or B, as long as they are not receiving outpatient drug benefits through Medicaid,
including 1115 waivers.
Fact
3. The $600 credit is for people with a card who have lower incomes. If
annual income is $12,569 or less for singles or $16,862 or less for a married
couple, person should apply for a $600 credit on his or her drug discount card.
Of the 7.3 million expected to enroll in the discount drug card program, an estimated
4.7 million are expected to apply for the $600 credit and save an estimated $2.4
billion, in addition to the savings from the discounts.
Fact
4. In this program, private companies (like a large group of pharmacies or an
insurance company) offer a discount card to people with Medicare. The
companies will decide which prescription drugs to discount on their cards and
the amount of discount for each drug. This means that you need to compare the
cards carefully to choose the one that offers your prescriptions at the best discounted
price. See Fact 5.
Fact
5. People with Medicare can choose a card that offers the best discounts on the
drugs they need. Starting
April 29, 2003, Centers for Medicare & Medicaid Services (CMS) will provide at
www.Medicare.gov and through
1-800-MEDICARE (1-800-633-4227), information about drug prices offered by the
Medicare-Approved Drug Discount Card Program, and other pharmacy assistance programs
and opportunities. This information will help beneficiaries compare discounted
prices negotiated by card sponsors, as well as the enrollment fees, and other
card program features from card to card. Some things to consider:
-
Look for the Medicare-approved seal. Keep in mind that a person can have only
one Medicare-approved discount card at a time. The $600 credit (if the person
is eligible) can only be applied to a Medicare-approved discount card.
-
If the person needs multiple drugs, check total savings and savings by drug. Sometimes
the best card won't discount every drug the person needs, but could provide bigger
discounts on his or her most expensive drugs. Generic alternatives for brand-name
drugs might also provide the best savings.
-
If the person is loyal to a particular pharmacy, look for a card that includes
that pharmacy.
-
If the person has addresses in more than one state or near a state border, look
for a card with a national service area.
Fact
6. Enrollment starts May 2004. Program lasts until December 31, 2005. --To
enroll in a Medicare-approved discount card program, beneficiaries must first
select the discount drug card that best meets their needs. Then they will submit
basic information about their drug coverage status to selected discount drug card
programs, such as zip code, drugs they are currently taking and how far they are
willing to drive to a pharmacy. If the beneficiary applies for the $600, they
must submit income, retirement and health benefits information, and sign the form.
--CMS will verify
the applicant's information and notify card sponsors about the beneficiary's eligibility
and enrollment. The drug card sponsor will then notify beneficiaries about their
application's status. --Eligible beneficiaries may start obtaining discounts,
and the $600 credit towards prescriptions - if they qualify, as early as the first
day of the following month.
--People who are ineligible for either the discount drug card or the $600 may
request that their application be reviewed again.
Fact
7. Cost for enrolling varies by card, but is no more than $30 per year. If eligible
for the $600 credit, enrolling is free. Private
companies that offer the cards are allowed to charge you an annual enrollment
fee of no more than $30. There is no monthly fee for any of these discount cards.
You will have to pay a new enrollment fee every calendar year. No matter when
you join a Medicare-approved drug discount card, you still have to pay the entire
annual enrollment fee.
Fact 8. The Medicare-approved drug discount card is not insurance and it is
not a substitute for any other health insurance you already have that covers prescription
drugs. For
more information click
here If
you want to learn more about the Medicare Prescription Drug Discount Card Program
please call 1-800-MEDICARE (1-800-633-4227) or visit www.medicare.gov.
If
you have any questions or comments please contact Legislative Research Analyst
Chil-Sook Hwang by fax: 202-347-1091
or by phone: 1-888-4GRANGE, ext 109. Thank
you for your grassroots participation in the National Grange Legislative program.
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