Notch Reform Bulletin: Low Income Seniors, Many Notch Babies May Be Eligible for $600 Prescription Drug Subsidy

Send this article to a friend.

Printer friendly version.

Notch Reform Bulletin: Low Income Seniors, Many Notch Babies May Be Eligible for $600 Prescription Drug Subsidy

Lower income seniors, including many Notch Babies, may soon be eligible for a government subsidy of up to $600 to help defray drug costs. The credit will be available through the new Medicare drug discount card program created under Medicare drug legislation signed into law late last year.

All Medicare beneficiaries, except those who already have Medicaid drug coverage, will be able to enroll in the new Medicare approved drug discount card program, with benefits expected to begin in June and to continue until the Medicare drug benefit is implemented in 2006. Individual seniors whose incomes are at or below $12,124, or married couples whose income is less than $16,363, may qualify for the $600 that would be credited to their card. The card could then be used like a debit card for drug purchases. Depending on income, low-income cardholders would have a 5 percent or 10 percent copayment for each drug purchase.

The drug cards are expected to offer savings of 10 to 15 percent off drugs, with bigger savings for generics, although estimates vary widely. Medicare recipients will have a choice of at least two Medicare-approved cards, but will be allowed to enroll in only one drug card program at a time. The cards may carry an annual fee of up to $30, but Medicare will cover the enrollment fee for the low-income card-holders who are eligible for the $600 credit.

Senior consumer advocates warn that medications covered under the discount cards will vary. Each drug discount card will have its own “formulary” or list of medications upon which discounts are offered. That list may be restrictive and it is therefore important to check the drugs and discounts under the plan you are considering BEFORE you enroll.

According to the Department of Health and Human Services, Medicare beneficiaries will be able to get information about how the discount drug card program operates, who can qualify, and how to join, as well as some comparative information in April and may call 1-800-MEDICARE (1-800-633-4227) or check online at http://www.medicare.gov.

TSCL believes that many Notch Babies who have little or no other income except Social Security may be eligible for this $600 credit, and urge you to call 1-800- MEDICARE to get more details PRIOR to enrolling in any new drug discount card program.

March 2004