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New Medicare Tools for Choosing Drug Discount Cards

April 12, 2004

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With a May deadline looming, the Department of Health and Human Services (HHS) is providing more information about the drug discount card program mandated by the new Medicare law.

"Beneficiaries will have many options to choose from, and that means they will be able to select a plan that will truly serve them best," HHS Secretary Tommy G. Thompson said. "Medicare will be there helping them navigate their choices and find the one that's right for their own circumstances."

To begin the process, HHS' Centers for Medicare & Medicaid Services said it is expanding the Prescription Drug and Other Assistance Programs section of www.medicare.gov.

By answering a few questions, users can get customized information about the Medicare-approved drug discount cards including the names of cards available to them, the enrollment fees and ways to contact the card programs. Starting April 29, users will be able to compare drug prices and find out which pharmacies in their area accept the new Medicare-approved drug discount cards.

Other information available on the Web site includes links to new publications and related Web sites, text on understanding prescription drug coverage, and information on some ways to save on prescription drugs through generic alternatives and use of mail order pharmacies.

CMS is publishing a new four-page pamphlet describing the Medicare-approved drug discount card program and a new "Guide to Choosing a Medicare-Approved Drug Discount Card." The free publications are available at www.medicare.gov. Both can also be ordered by calling 1-800-MEDICARE (1-800-633-4227).

While Medicare-approved sponsors have one more month to finalize their products, they are planning to offer 48 general drug discount cards, including 27 available nationally to all eligible Medicare beneficiaries. Thirty-six of the general cards will charge a fee of under $30 to enroll in a card, including five that will not charge a fee.

In addition, many Medicare Advantage health plans across the United States will offer Medicare-approved drug discount cards as an integral part of their benefit package for their Medicare enrollees.

"Beneficiaries will soon have important new opportunities to lower their drug costs, with at least 27 national cards to choose from, as well as others being offered regionally and by Medicare Advantage plans in their communities," Secretary Thompson said. "The cards will provide discounts on the high cost of prescription drugs in just a few short months. We are aggressively reaching out to our beneficiaries, to educate seniors about the valuable new program."

The new guide and Prescription Drug and Other Assistance Programs Web site describe the Medicare-approved discount card program, how to apply for a card and how the cards will work for people with Medicare. In addition, the guide explains drug discounts, including the price differences between generic drugs and brand name drugs. The guide and Web site also explains who can qualify for the $600 credit and how to apply for that assistance.

"In addition to providing a fundamentally new way for Medicare beneficiaries to find the best prices and the most help for their drug purchases, the Medicare Web site goes even further in helping low-income seniors and people with disabilities by including information about ways to save even more by using less expensive drugs, including generics," said CMS Administrator Mark B. McClellan, M.D., Ph.D. "The updated Web site also lists other programs like state Medicaid plans, state pharmaceutical programs and discount programs offered by pharmaceutical manufacturers and the $600 credit available through the Medicare-approved discount drug card program."

The cards will provide a $600 annual credit to eligible low-income Medicare beneficiaries. Individuals whose income this year is less than $12,569 or married couples whose income this year is less than $16,862 may qualify for this additional help. Medicare will cover the cost of any enrollment fee for these low-income cardholders. HHS will work aggressively to reach eligible low-income beneficiaries so they understand this new program, and can enroll quickly.

Along with information about prescription drug assistance programs generally, the information on the Web site will help people with Medicare locate the cards that will be offered in their area and their enrollment fees, if any. At the end of April, this database will be expanded to include the discounted drug prices that each card sponsor will offer to Medicare beneficiaries. Beginning May 3, seniors and people with disabilities covered under Medicare will be able to enroll in a card program, and begin to use the card on June 1. Customer service representatives at 1-800-MEDICARE also will be able to answer questions about the program, help beneficiaries compare drug cards on price and network pharmacies, and refer callers to other appropriate resources such as their local State Health Insurance Assistance Programs (SHIPs).

HHS is reaching out to seniors and people living with disabilities who are covered by Medicare, to inform them of benefits available to them under the prescription drug card program. Those efforts are described below:

• HHS will work with SHIPs to distribute educational material to seniors to help them make choices.
• HHS will continue its 1-800-MEDICARE advertising campaign to inform Medicare beneficiaries about the discount cards and place an emphasis on explaining the low-income benefit. The campaign will include television, radio, newspaper and Internet advertising in both English and Spanish.
• HHS will mail a short, overview pamphlet directly to every Medicare household starting late next month.
• The Social Security Administration will mail a separate letter to Medicare beneficiaries with lower incomes, who are likely to be eligible for the $600 credit.

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