Medicare Drug Card

Are Medicare drug discount cards right for you?

Seniors have given a lackluster response to the Medicare drug discount card because of confusion about the program. But those Medicare-eligible seniors without prescription drug coverage likely would benefit. Go to www.medicare.gov or call (800) 633-4227 to find out more.

Since June 1, 2004, Medicare participants have been able to purchase and use Medicare drug discount cards, intended to help seniors with no prescription drug coverage. The discount cards are effective from June 2004 through the end of 2005, after which time a Medicare prescription drug benefit program will begin.

Medicare-eligible retirees without prescription drug coverage should look into participating in this new program, says Chris Stephen, National Rural Electric Cooperative Association's (NRECA) Senior Principal for Legislative Affairs. However, those with prescription drug coverage are unlikely to gain any advantage by joining the discount card program.

Medicare drug discount cards:

• Are available only to Medicare participants who do not have outpatient prescription drug coverage through Medicaid.
• Cost no more than $30 per year.
• Enable seniors to save an estimated 10-25 percent on many full retail price prescriptions.
• Cost nothing for low-income seniors who do not have prescription drug coverage (except a Medicare + Choice plan or a Medigap policy) and come with a $600 credit.
• Have voluntary enrollment.

There are more than 70 different Medicare drug discount cards — 40 national cards and 33 regional — offered by private-sector sponsors (e.g., insurance companies or a large group of pharmacies). Each discount card provides different discounts on different prescription drugs. However, a sponsor can change its discount drug list and the discounted price at anytime, and not all pharmacies accept the cards. Participants can have only one Medicare-approved drug discount card at a time and can only switch to a new discount card in 2005 (certain exceptions apply).

You might expect the discount card program to be a resounding success given the rise in drug prices these past few years. Since 2000, drug prices have risen 27.6 percent, three times the rate of inflation.

However, of the 41 million seniors on Medicare, just 2.8 million have enrolled in the discount card program.

Should you enroll in the Medicare drug discount card program?

If seniors have prescription drug coverage through their current health insurance or already get discounts on prescriptions from other programs, their existing coverage most likely saves them more than the new Medicare drug discount card. Seniors may still obtain a drug discount card in addition to their existing health coverage, but they could only use either the discount card or their existing coverage for a particular prescription (whichever yields the greatest discount).

However, Medicare-eligible seniors without prescription drug coverage are likely to benefit by enrolling in the program. Want to learn more?

Medicare has created a Web site and a phone line to assist individuals wishing to learn more about the discount card program:

Go to www.medicare.gov and select "Prescription Drug and Other Assistance Programs," or call 800-MEDICARE, (800) 633-4227, and ask about drug savings.

Both resources allow users to determine which discount card sponsor offers the lowest price on brand name, generic, and mail order drugs.

Source: Omar Bassal, NRECA Benefits Department

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