Senior Corner Columnist Explains Medicare Rx Discount Card
By: Source: AARP.org Date Posted: 2004-04-20 15:54:00-04:00
By Bill Paskowski
Based on information from AARP and the federal Centers for Medicare and Medicaid Services (CMS), I have tried to explain how the Medicare Rx Discount Card works. Applications are available in early May for the benefit that takes effect June 1.
Medicare recipients who do not have Medicaid coverage to pay for drugs are eligible for the temporary discount card. The cards are available this June and will be phased out in January 2006 when the full Medicare drug benefit kicks in.
About 14 million seniors and people with disabilities nationwide are eligible for the discount card. A smaller number of seniors who live on a limited income are also eligible for a discount card with $600 credit on the card for this year and another $600 for 2005. This $600 annual credit is available only to Medicare beneficiaries who have incomes below $12,569 as individuals or $16,862 as couples, and who do not have drug coverage from Medicaid, the military, a former employer or any other group policy unless it is from a Medicare+Choice plan.
There is no enrollment fee for people who qualify for the $600 credit, and there is up to a $30 enrollment fee for all others.
Most cards will offer discounts of 10% to 15%. But representatives of the pharmaceutical industry say discounts may go up to 25%.
Choosing a Card
Seniors might be confused by how to choose a discount card because they could be sent multiple solicitations from private companies offering the cards. On March 25, CMS announced it approved 28 private sponsors nationwide to provide seniors and people with disabilities the Medicare Drug Discount Cards. About half of those companies will be offering cards in Connecticut. All discount cards approved by Medicare will say "Medicare-approved," so beware of offers that are not Medicare-approved.
CMS has information online and a toll-free phone number (1-800-MEDICARE) to help people choose the card that is best for them.
This information will help you compare discounted prices negotiated by card sponsors, as well as enrollment fees and other features that differ from card to card. Customer service representatives at 1-800-MEDICARE will also be able to answer questions about the program, help you compare drug cards on price and network pharmacies and refer you to other appropriate resources. They will also mail the results of the comparison to you for cards available at your local pharmacies.
CMS also has issued a "Guide to Choosing a Medicare-Approved Drug Discount Card" that explains the program and how to compare discount cards. The booklet is posted online, and printed copies are available in April for free by calling 1-800-MEDICARE. CMS will also mail a short publication directly to every Medicare household starting in late April.
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.
AARP also has a free booklet explaining the Medicare drug law, available as a pdf online or by calling 1-888-OUR-AARP.
AARP will conduct a broad awareness campaign to inform members and non-members of all the various discount card programs. AARP will place special emphasis on helping consumers understand how they can save money and encourage members to seek out the best card, if one is right for them.
It's a lot to digest, but the help is out there.
Until next time, stay healthy,
Bill
Bill Paskowski is the AARP legislative representative from New Milford Chapter #3241. He writes regularly about AARP advocacy issues.
Other Resources
- How Will Medicare Affect You? (download pdf)
- State Legislative Update — Progress Made
- Medicare and Prescription Drugs
- Medicare Discount Cards Will Bridge Gap to 2006
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