New Medicare Discount Cards Available to Help Seniors' Prescription Costs

New Medicare Discount Cards Available to Help Seniors' Prescription Costs
May 16, 2004

Washington, D.C. - Many of my constituents are asking about the new Medicare Drug Discount Cards. They have heard something about them on television reports or from their friends, but they don't know about the benefits, or if they can still enroll. I'd like to spell out exactly what seniors stand to gain from this improvement to the Medicare system, and how they can participate.

One of the biggest challenges our seniors face is paying for the escalating costs of their prescription drugs. Pharmaceutical costs have skyrocketed in recent years, and senior citizens, who typically have the most prescriptions, are facing the brunt of these costs. That's why in Congress we passed Medicare Prescription Drug legislation, which made historic changes to Medicare law, adding a prescription drug benefit for seniors and modernizing the program to reflect the cutting-edge health care innovations of the 21st century.

An important part of that legislation is the new Medicare Drug Discount Cards, which have been established as an interim program to help people save on their prescriptions until the full Medicare prescription drug benefit is available in January 2006. Enrollment for these cards began this month, and will continue through next year.

Apparently, there are a lot of questions about this new program, because on Thursday the Centers for Medicare and Medicaid Services, which issues the new discount cards, announced it was taking steps to respond to the additional call volume it has received from seniors taking advantage of the new service. They are adding more employees to answer calls and enhancing the office's website with additional information, to deal with the tenfold increase in call volume from last week alone.

All Medicare beneficiaries, except those whose drugs are covered by Medicaid, are eligible for the Medicare-approved cards, and the discounts will be effective June 1. Enrollment fees cannot exceed $30, and Medicare will pay this fee for low-income seniors. Sadly, opponents of our prescription drug plan have tried to convince seniors not to sign up, saying it won't translate into savings on drug prices. But the
Department of Health and Human Services expects average savings on drug prices of 10-25 percent, and non-government studies anticipate average savings of at least 17 percent off brand name and 35 percent off generic drugs.

This program also provides for additional help for low-income seniors. If in 2004 your annual income is less than $12,569 for a single person, or less than $16,862 for a married couple, you probably qualify for a $600 credit on the Medicare-approved drug discount card you choose. You can use that credit right away to help pay for your prescription drugs.

It's also important for seniors to remember that this program is voluntary. It is available to almost anyone with Medicare, and seniors are still eligible for the other Medicare programs regardless if they sign up for the card.

Seniors also have the choice of several cards, to find the one that is best for them. Medicare can help you compare your options before you choose a card based on your location, prescription drugs, income, and other preferences. Beneficiaries can choose the card that gets them the lowest prices, and if they wish, they can also get help finding low or no-fee cards, cards that include specific neighborhood pharmacies, or cards from specific sponsors.

To enroll, call 1-800-MEDICARE (1-800-633-4227) and ask about "drug savings." Hearing impaired users should call 1-877-486-2048. Or go to www.medicare.gov on the web, and select "Prescription Drug and Other Assistance Programs."

The new Medicare Discount Card will provide significant savings to seniors on prescription drugs. The more seniors know about this new program, the more they'll like it.