HHS Has Detailed Resources to Help Beneficiaries Make Informed Choices

HHS Secretary Tommy G. Thompson announced today that seniors and people with disabilities who receive Medicare can now begin to compare and choose the Medicare-approved drug discount card that best fits their needs in providing savings on their prescription medicines.  The new cards are expected to offer Medicare beneficiaries discounts on their prescription drugs of
between 10 and 25 percent.  Low-income beneficiaries may also receive a credit of up to $600 each year in 2004 and 2005 to help pay for theirprescriptions.

Beginning today, private organizations can begin marketing their
Medicare-approved discount cards to people with Medicare and beneficiaries
are now able to compare cards and enroll in the one they choose. Medicare is
providing a new Price Comparison Web site at www.Medicare.gov, on which
industry drug prices are being posted for the first time.

Secretary Thompson said the drug discount cards are an important new way for
seniors to save money on their prescriptions, and he encouraged people with
Medicare to shop and compare the prices offered by various cards. Secretary
Thompson said competition between card sponsors will work to drive down
prices even further, particularly in the first couple weeks of the program
-- providing an even greater opportunity for seniors to save.

"The power to save on prescription drugs is now in hands of seniors and
people with disabilities," Secretary Thompson said. "This is a first.
Industry is competing on-line for the business of millions of Medicare
beneficiaries and those beneficiaries have now pooled their purchasing power
to demand the best price.

"Seniors should compare prices and choose the card that's best for them,"
Secretary Thompson said. "Help in comparing cards is only a phone call away
to 1-800-MEDICARE, where a customer service representative will send
beneficiaries a personalized comparison of cards available to them for the
drugs they take."

Secretary Thompson particularly urged low-income seniors who may qualify for
the $600 credit in addition to the discounts to participate in the drug card
program. The discount card program is providing unprecedented assistance to
low-income seniors and persons with disabilities to pay for their medicines,
he said.

"Those in greatest need will receive the most help from the drug discount
card program," Secretary Thompson said. "Seniors and their caregivers should
pursue whether they are eligible for the $600 credit and avail themselves of
this helpful new benefit."

Low-income Medicare beneficiaries may qualify for the $1,200 credit over the
18-month life of the discount card program to help pay for the prescription
drugs if their income in 2004 is no more than $12,569 if single or no more
than $16,862 if married.

In addition, the Centers for Medicare & Medicaid Services (CMS) recently
announced that low-income Medicare beneficiaries enrolled in state pharmacy
assistance programs that provide discounts on prescriptions drugs may, at
the state's option, be automatically enrolled for the $600 credit on a
Medicare-approved drug discount card.  States that have the authority to act
as an "authorized representative" of a beneficiary (as defined by state law)
will be permitted to enroll beneficiaries in drug discount cards on the
beneficiary's behalf.  This step will make it easier for low-income
beneficiaries in states with pharmacy assistance programs to get $600 in
additional help.

To make it even easier to sign up for a discount drug card as well as the
$600 credit, CMS has established a standard enrollment form that all card
sponsors will have to accept. This form will also be used by State Health
Insurance Assistance Programs (SHIPs), and other partners and organizations
that assist beneficiaries with their health care decisions. While Medicare
is providing comparisons and assistance with enrollment, the beneficiaries
must enroll directly with the card sponsor they choose.

All Medicare beneficiaries, except those who have outpatient drug coverage
through Medicaid, are eligible to enroll in a Medicare-approved drug
discount card program starting today.  Beneficiaries who enroll by the end
of May will be fully eligible for the discounts and financial assistance
beginning in June.  The card sponsors may charge an annual enrollment fee of
no more than $30, though many cards have lower fees and some have no fee.
There is no enrollment fee on any card for people who qualify for the $600
credit.

To date, CMS have approved 40 national cards available to all eligible
beneficiaries, 33 regional cards available.  This includes a national Long
Term Care card available for those in nursing homes and a regional card
available for the Territories.  A small number of additional card
applications are still being reviewed, and the number of cards that meet all
Medicare requirements is expected to increase. The Web site will post the
prices of more than 60,000 drug products at nearly 50,000 pharmacies.

"It's important for beneficiaries and their family members to take the time
they need to look into all the cards that are available," said CMS
Administrator Mark B. McClellan, M.D., Ph.D.  "But beneficiaries who qualify
for the $600 credit and free enrollment should try to sign up this month, so
that they can get the maximum assistance with their drug costs."

Secretary Thompson said the opportunity for beneficiaries to band together
to get lower negotiated prices, along with an unprecedented, large-scale
public reporting of prescription drug prices, will put pressure on card
sponsors to reduce prices so that beneficiaries will get the best savings on
their medicines.  HHS is offering tools and personalized assistance to help
seniors and other people with Medicare to compare cards and choose the one
that provides them with the best savings.

Beneficiaries can compare the prices of drugs offered by the drug cards at
www.medicare.gov or by calling 1-800-MEDICARE (1-800-633-4227).  This
information will help them compare the discounted prices negotiated by the
card sponsors, as well as the enrollment fees, and other discount card
features.  They can also compare the prices of drugs being charged at their
local pharmacies and find out the cards the pharmacies honor.  The card
sponsors provide the pricing and pharmacy information to CMS and that
information is being updated weekly.

Customer service representatives at 1-800-MEDICARE can answer questions
about the program, help callers compare the drug cards on price and network
pharmacies, and provide additional information for low-income beneficiaries
on prescription drug assistance programs sponsored by their state and by
drug manufacturers.  The customer service representatives will mail the
personalized results of the comparison to callers.

"If you tell us your zip code and your medicines, we will sort through
information on about 60,000 drug products and nearly 50,000 pharmacies to
find the best prices for your needs," Dr. McClellan said.  "And if you want
to focus on cards that include particular pharmacies, or particular
sponsors, or low or no fees, we can do that too.  The next business day
after you contact us, we'll mail you an individualized booklet that gives
you detailed information on the cards that meet your preferences and provide
the best prices, on other sources of personal savings like discounted
generic drugs, and on how to enroll."

In addition to 1-800-MEDICARE and www.medicare.gov, HHS is reaching out to
seniors and others who receive Medicare to inform them of the benefits of
the Medicare-approved drug discount cards, including:

·       -- Issuing a detailed "Guide to Choosing a Medicare-Approved Drug
Discount Card" that explains the program, including eligibility and
enrollment information, and provides step-by-step guidance for comparing
discount cards and choosing one. The booklet is now available at
www.medicare.gov and through 1-800-MEDICARE.
·       -- Increasing funding for and working with SHIPs to provide one-on-one
counseling and distribute educational material to people with Medicare to
help them make choices.  SHIP counselors are located at senior centers and
other locations accessible to beneficiaries and their families to help them
better understand Medicare and assist them with their particular concerns
and choices of drug discount cards.
·       -- Continuing the 1-800-MEDICARE advertising campaign with a national
television ad campaign of $18 million to inform people with Medicare about
the discount cards and place an emphasis on explaining the $600 credit. The
broader campaign also includes print and Internet advertising in both
English and Spanish.
·      -- Mailing a shorter, overview publication directly to every Medicare
household.

 "We are making it as easy as possible for Medicare beneficiaries to get the
information they will need to make a decision that best fits their own
prescription drug needs," Secretary Thompson said.

Medicare-approved drug discount cards must offer discounts on prescription
drugs for all of their Medicare enrollees.  At least some of these savings
must come from manufacturer rebates.   Card sponsors also must publish
prices for the prescription drugs their cards will cover, provide access to
an extensive retail pharmacy network, operate call centers and have a
process to respond to beneficiary concerns.  Card sponsors may add drugs or
lower prices at any time, but can only increase the negotiated price for
covered drugs if there is a legitimate change in the sponsor's costs, such
as changes in the discounts, rebates or other price concessions received
from a drug maker or pharmacy.   Medicare will also collect and track
consumer complaints about Medicare-approved cards.