Medicare Discount Card Program Undergoes Chaotic Launch

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Medicare Discount Card Program Undergoes Chaotic Launch

Op-ed by Mary Johnson, TSCL Advisor Editor
The government recently rolled out the new Medicare Rx prescription discount card program. But seniors were not exactly lined up at the doors of their pharmacy to sign up. After the first week, at least 2.8 million out of about 41 million Medicare beneficiaries received cards, but most of those were automatically enrolled by their private health plans. Only 500,000 or so went to the trouble to sign up on their own.

ï¿½Local senior citizens say they might have been more excited about the new Medicare discount card that rolled out yesterday ï¿½ if they knew what they were getting,ï¿½ Deborah Morris of Newsday.com reported.

I agree. In April I was one of thousands of callers to the Medicare 800 number trying to get information about the new discount card program for a long-time Notch Baby friend. After listening to an exhausting menu of options (not good for a person with a short memory like me), I finally got what sounded suspiciously like a radio ad for the new prescription drug legislation. I was then returned to the beginning menu where I had to start all over again. The very kind young man I finally talked to told me that some of the information I was looking for was not available yet. This was just one week before the program enrollment was supposed to begin.

Seniors and their well-meaning friends face a daunting task in choosing the right card. Itï¿½s virtually impossible to shop for a card unless you have access to the Internet and are somewhat computer savvy or at least patient enough to navigate the oft-challenging Medicare website. I am neither. The web site, www.Medicare.gov, displays prices for more than 60,000 drugs that can be purchased by 73 discount cards at more than 50,000 pharmacies around the country or through the mail.

The prices can change weekly. What looks like a good deal today could be entirely different next week. By the time seniors were allowed to start using the cards on June 1, many of the drug prices that I researched online in May were outdated, changed, or so high they looked like they had to be wrong. Many of you know that feeling.

Adding to the cost of the drugs is the annual enrollment fee. Only four out of 37 cards that I researched had no enrollment fee. Twenty cards charged the maximum $30 annual enrollment fee.

Making matters worse, you only are allowed to sign up for one card for the rest of 2004. In November, you will be able to switch and shop for another card for 2005 should you think it worthwhile.

For some low-income seniors who are not covered under Medicaid, there is a $600 credit. To be eligible for the $600 credit, your annual gross income must be no more than $12,569 ($1,048/month) for an individual or no more than $16,862 ($1,406/month) for a couple. If you qualify, you wonï¿½t have to pay the enrollment fee. Depending on income, seniors who qualify for the credit may still be responsible for a 5% to 10% copay on the discounted price. Seniors who are eligible can apply for the credit by filling out an enrollment form, available through the company that sponsors the discount card.

Some cards may not cover all the drugs you need. Itï¿½s important to find out before signing up. After two calls to the 1-800-Medicare number (1-800-633-4227) and three computer searches of the Medicare prescription drug card comparison database, I finally had enough information to conclude that my Notch Baby friend could not find better savings than his TSCL prescription discount card, RxSavings Plus. Virtually every other card in his area would have cost him more. There is no enrollment fee, and you may have other discount cards if you need them (but only one Medicare prescription drug card as provided for through the new law).

Shop around and compare prices. And for more information about RxSavings Plus, contact TSCL Member Services Coordinator, Ms. Garlette Dunkley, at 909 N. Washington Street, Suite 300, Alexandria, VA 22309, or e-mail her at MemberBenefits@tsclhq.org. TSCL receives no commissions or any other form of compensation through this program and, like my friend; you may find that itï¿½s your best deal too.

Sources: ï¿½Medicareï¿½s Drug-Discount Card Gets Modest Reception In Debut,ï¿½ Sarah Lueck, The Wall Street Journal, June 2, 2004. ï¿½Seniors Wary Of Discount Drug Cards,ï¿½ Deborah Morris, Newsday.com, June 2, 2004. ï¿½Drug Discounts Beginning Tuesday, But Sign-Ups Lag,ï¿½ Robert Pear and Milt Freudenheim, The New York Times, June 1, 2004.

July 2004