Medicare News
| For Immediate Release: | Contact: |
| Friday, May 28, 2004 | CMS Office of Public Affairs 202-690-6145 |
For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov. |
|
MEDICARE-APPROVED PRESCRIPTION DRUG DISCOUNT CARDS SHOW SIGNIFICANT, SUSTAINED DISCOUNTS
Medicare beneficiaries who signed up for one of the new Medicare-approved Prescription Drug Discount cards posting the best prices are likely to find the bargains holding and even improving, Mark B. McClellan, M.D., Ph.D., administrator of the Centers for Medicare & Medicaid Services (CMS), said today.
"Medicare-approved drug discount card savings are significant and they are stable," McClellan said. "Beneficiaries who are struggling with drug costs should call us at 1-800-MEDICARE to find out about the discount cards now, to start saving as soon as June 1."
A CMS analysis of drug card performance during the 4th week since sponsors began marketing their cards and posting prices of the Medicare website, www.medicare.gov, showed big savings over national average retail prices.
The analysis also found that the cards offering some of the best prices stayed largely the same from last week to this week, with the same cards still offering the best deals for beneficiaries.
"The first four weeks of this new program shows that allowing beneficiaries to band together lowers prices, and that allowing them to compare drug prices brings them down further," McClellan said. "We are seeing sustained savings. Cards that attracted enrollees with the best prices are still offering the best prices, while prices over the past four weeks have declined on many cards and are still trending downward."
For its analysis, CMS compared the best prices to national average retail pharmacy prices, adjusted to reflect a 30-day supply, for six "baskets" or commonly used drugs for illustrative beneficiaries.
The CMS analysis showed that for the week of May 24 the six illustrative beneficiaries would have saved 11.3 to 17.9 percent over the national average retail price. This range of savings was consistent with results from prior weeks.
In dollar terms, the monthly savings for the illustrative beneficiaries ranged from $15 to $68. Over the course of a year, these savings would be even more substantial, approximately $180 to $816.
"With these savings, a beneficiary may easily recover the card enrollment fee in just a month or two," McClellan said. "In fact, we found Medicare-approved discount cards offering some of the best discounts with enrollment fees less than the maximum $30 they are allowed to charge."
Although discounted prices are stabilizing at lower levels, the CMS analysis also showed a continuing shift toward larger discounts for all six illustrative beneficiaries since the week of May 3, when the cards were first offered. For example, the level of discount for the mix of drugs taken by beneficiary No. 3 increased from 12.8 percent to 15.6 percent. The discount for beneficiary No. 4, rose from10.2 percent to 14.1 percent, and the discount for beneficiary No. 6 went from 11.1 percent in week one to 16 percent in week four.
"The discounts beginning on June 1 can provide important help for a low fee or even no fee for Medicare beneficiaries," McClellan said.
McClellan reminded Medicare beneficiaries that to get peak benefit from the card, they should go to www.medicare.gov on the Internet and compare prices offered in their areas for the drugs they need. Or they can call 1-800-MEDICARE and an operator will help them find the information.
