Discount Card from Medicare

In December of 2003 the President signed into law Medicare Prescription Drug, Improvement and Modernization Act of 2003. This legislation is one of the most extensive changes to Medicare since it's inception in 1965 and is now estimated to have a cost to the taxpayer of $540 billion conservatively.

The prescription drug benefit portion of the law does not come into effect until 2006. Until it goes into effect Medicare will provide this temporary program of Medicare Discount Cards.

Quick Facts About The Discount Card from Medicare

• The Discount Card is a first step toward a prescription drug benefit for Medicare beneficiaries.
• The Discount Card is not a comprehensive Medicare prescription drug benefit.
• The Discount Card is a voluntary program and is slated to begin six months after the Medicare Reform bill is signed into law.
• The Discount Card is intended as a temporary program to provide immediate assistance in lowering prescription drug costs for Medicare beneficiaries during 2004 and 2005 and will end when Medicare implements a new, comprehensive prescription drug benefit that will begin January 1, 2006.
• The Discount Card is designed to provide Medicare beneficiaries access to discounts on their prescription drugs through enrollment in card programs offered by sponsors approved by Medicare.
• All Medicare beneficiaries are eligible for The Discount Card, except for those who have Medicaid drug coverage.
• Certain enrollees may also qualify for as much as $600 to help them pay for prescription drugs. Eligibility for this assistance will be based on a beneficiary's income and whether he or she already has any other prescription drug coverage.
• The Discount Card is only one of a number of programs available to help Medicare beneficiaries receive discounts on the price of their prescription drugs.
• Discount cards that are approved by Medicare will display a Medicare-approved mark on the card.

One important part of the legislation that beneficiaries should be aware of is that it prevents Medicare from negotiating lower prices for drugs. The Military health system, the VA health system, most private insurance plans, and state run Medicaid programs all negotiate for lower prices based on buying volume. Beneficiaries may find that discount programs they are already enrolled in of may still provide them with higher savings because the initial price is lower. You will need to read all plans carefully and compare benefits.

If you have questions contact Medicare by going to their website and select "Prescription Drug and Other Assistance Programs"or by calling 1-800-MEDICARE (1-800-633-4227).