News Release
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FOR IMMEDIATE RELEASE
Monday, May 3, 2004 |
Contact: CMS Public Affairs
(202) 690-6145 |
Medicare-Approved Drug Discount Card Savings Now Available
HHS Secretary Tommy G. Thompson announced today that seniors and
people with disabilities who receive Medicare can now begin to
compare and choose the Medicare-approved drug discount card that
best fits their needs in providing savings on their prescription
medicines. The new cards are expected to offer Medicare
beneficiaries discounts on their prescription drugs of between 10
and 25 percent. Low-income beneficiaries may also receive a
credit of up to $600 each year in 2004 and 2005 to help pay for
their prescriptions.
Beginning today, private organizations can begin marketing their
Medicare-approved discount cards to people with Medicare and
beneficiaries are now able to compare cards and enroll in the one
they choose. Medicare is providing a new Price Comparison Web site
at www.Medicare.gov,
on which industry drug prices are being posted for the first time.
Secretary Thompson said the drug discount cards are an important
new way for seniors to save money on their prescriptions, and he
encouraged people with Medicare to shop and compare the prices
offered by various cards. Secretary Thompson said competition
between card sponsors will work to drive down prices even further,
particularly in the first couple weeks of the program -- providing
an even greater opportunity for seniors to save.
“The power to save on prescription drugs is now in hands of
seniors and people with disabilities,” Secretary Thompson
said. “This is a first. Industry is competing on-line for the
business of millions of Medicare beneficiaries and those
beneficiaries have now pooled their purchasing power to demand the
best price.
“Seniors should compare prices and choose the card
that’s best for them,” Secretary Thompson said.
“Help in comparing cards is only a phone call away to
1-800-MEDICARE, where a customer service representative will send
beneficiaries a personalized comparison of cards available to them
for the drugs they take.”
Secretary Thompson particularly urged low-income seniors who may
qualify for the $600 credit in addition to the discounts to
participate in the drug card program. The discount card program is
providing unprecedented assistance to low-income seniors and
persons with disabilities to pay for their medicines, he said.
“Those in greatest need will receive the most help from the
drug discount card program,” Secretary Thompson said.
“Seniors and their caregivers should pursue whether they are
eligible for the $600 credit and avail themselves of this helpful
new benefit.”
Low-income Medicare beneficiaries may qualify for the $1,200 credit
over the 18-month life of the discount card program to help pay for
the prescription drugs if their income in 2004 is no more than
$12,569 if single or no more than $16,862 if married.
In addition, the Centers for Medicare & Medicaid Services (CMS)
recently announced that low-income Medicare beneficiaries enrolled
in state pharmacy assistance programs that provide discounts on
prescriptions drugs may, at the state’s option, be
automatically enrolled for the $600 credit on a Medicare-approved
drug discount card. States that have the authority to act as
an “authorized representative” of a beneficiary (as
defined by state law) will be permitted to enroll beneficiaries in
drug discount cards on the beneficiary’s behalf. This
step will make it easier for low-income beneficiaries in states
with pharmacy assistance programs to get $600 in additional
help.
To make it even easier to sign up for a discount drug card as well
as the $600 credit, CMS has established a standard enrollment form
that all card sponsors will have to accept. This form will also be
used by State Health Insurance Assistance Programs (SHIPs), and
other partners and organizations that assist beneficiaries with
their health care decisions. While Medicare is providing
comparisons and assistance with enrollment, the beneficiaries must
enroll directly with the card sponsor they choose.
All Medicare beneficiaries, except those who have outpatient drug
coverage through Medicaid, are eligible to enroll in a
Medicare-approved drug discount card program starting today.
Beneficiaries who enroll by the end of May will be fully eligible
for the discounts and financial assistance beginning in June.
The card sponsors may charge an annual enrollment fee of no more
than $30, though many cards have lower fees and some have no
fee. There is no enrollment fee on any card for people
who qualify for the $600 credit.
To date, CMS have approved 40 national cards available to all
eligible beneficiaries, 33 regional cards available. This
includes a national Long Term Care card available for those in
nursing homes and a regional card available for the
Territories. A small number of additional card applications
are still being reviewed, and the number of cards that meet all
Medicare requirements is expected to increase. The Web site will
post the prices of more than 60,000 drug products at nearly 50,000
pharmacies.
“It’s important for beneficiaries and their family
members to take the time they need to look into all the cards that
are available,” said CMS Administrator Mark B. McClellan,
M.D., Ph.D. “But beneficiaries who qualify for the $600
credit and free enrollment should try to sign up this month, so
that they can get the maximum assistance with their drug
costs.”
Secretary Thompson said the opportunity for beneficiaries to band
together to get lower negotiated prices, along with an
unprecedented, large-scale public reporting of prescription drug
prices, will put pressure on card sponsors to reduce prices so that
beneficiaries will get the best savings on their medicines.
HHS is offering tools and personalized assistance to help seniors
and other people with Medicare to compare cards and choose the one
that provides them with the best savings.
Beneficiaries can compare the prices of drugs offered by the drug
cards at www.medicare.gov or by calling
1-800-MEDICARE (1-800-633-4227). This information will
help them compare the discounted prices negotiated by the card
sponsors, as well as the enrollment fees, and other discount card
features. They can also compare the prices of drugs being
charged at their local pharmacies and find out the cards the
pharmacies honor. The card sponsors provide the pricing and
pharmacy information to CMS and that information is being updated
weekly.
Customer service representatives at 1-800-MEDICARE can answer
questions about the program, help callers compare the drug cards on
price and network pharmacies, and provide additional information
for low-income beneficiaries on prescription drug assistance
programs sponsored by their state and by drug manufacturers.
The customer service representatives will mail the personalized
results of the comparison to callers.
“If you tell us your zip code and your medicines, we will
sort through information on about 60,000 drug products and
nearly 50,000 pharmacies to find the best prices for your
needs,”
Dr. McClellan said. “And if you want to focus on cards
that include particular pharmacies, or particular sponsors, or low
or no fees, we can do that too. The next business day after
you contact us, we’ll mail you an individualized booklet that
gives you detailed information on the cards that meet your
preferences and provide the best prices, on other sources of
personal savings like discounted generic drugs, and on how to
enroll.”
In addition to 1-800-MEDICARE and www.medicare.gov, HHS is
reaching out to seniors and others who receive Medicare to inform
them of the benefits of the Medicare-approved drug discount cards,
including:
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Issuing a detailed “Guide to Choosing a Medicare-Approved
Drug Discount Card” that explains the program, including
eligibility and enrollment information, and provides
step-by-step guidance for comparing discount cards and choosing
one. The booklet is now available at www.medicare.gov and
through 1-800-MEDICARE.
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Increasing funding for and working with SHIPs to provide
one-on-one counseling and distribute educational material to
people with Medicare to help them make choices. SHIP
counselors are located at senior centers and other locations
accessible to beneficiaries and their families to help them
better understand Medicare and assist them with their particular
concerns and choices of drug discount cards.
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Continuing the 1-800-MEDICARE advertising campaign with a
national television ad campaign of $18 million to inform people
with Medicare about the discount cards and place an emphasis on
explaining the $600 credit. The broader campaign also includes
print and Internet advertising in both English and Spanish.
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Mailing a shorter, overview publication directly to every
Medicare household.
“We are making it as easy as possible for Medicare
beneficiaries to get the information they will need to make a
decision that best fits their own prescription drug needs,”
Secretary Thompson said.
Medicare-approved drug discount cards must offer discounts on
prescription drugs for all of their Medicare enrollees. At
least some of these savings must come from manufacturer
rebates.
Card sponsors also must publish prices for the prescription drugs their
cards will cover, provide access to an extensive retail pharmacy
network, operate call centers and have a process to respond to
beneficiary concerns. Card sponsors may add drugs or lower
prices at any time, but can only increase the negotiated price for
covered drugs if there is a legitimate change in the
sponsor’s costs, such as changes in the discounts, rebates or
other price concessions received from a drug maker or
pharmacy. Medicare will also collect and track consumer
complaints about Medicare-approved cards.
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Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.
Last Revised: May 3, 2004
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