Medicare Drug Discount Card Fails

Drug Discount Card Program Will be

Washington, D.C. - The Department of Health and Human Services today will launch the automated Prescription Drug Assistance Program for Medicare beneficiaries - a program expected to start in June 2004. The following is the statement of Ron Pollack, Executive Director of Families USA, concerning the discount card program:

"The new drug discount card program will be very disappointing for America's seniors and will fail to make drug costs affordable. With drug costs continuing to skyrocket, this program is like a used car salesman offering a $3,000 discount after the sticker price was increased by $4,000.

"There are several notable shortcomings about the discount card program. First, the base prices from which discounts will be offered are rising very quickly. As a result, seniors will receive little or no relief from their previous drug costs. It would be far better to allow Medicare to bargain with the drug companies to get prices down - but, unlike the Veterans Administration, which bargains to get good prices for veterans, the new law prohibits Medicare from doing this for seniors.

"Second, seniors can only enroll in one discount card program and will be locked into that single card program for an entire year. However, the discount card sponsor can switch which drugs are subject to a discount, and the size of the discount, virtually every day. This will enable discount card sponsors to engage in 'bait and switch' practices that will harm seniors.

"Third, the new discount card program will be very confusing for America's seniors. Seniors will have to make complicated decisions. They will have to evaluate which of many cards will give them the best discount on a combination of drugs, and from which of many pharmacies.  This will be a complicated process. It is likely that seniors will be bewildered by the new program."

Click here for a new Families USA price survey concerning how the new Medicare drug discount program compares with existing discounts from Drugstore.com and prices for the Veterans Administration and in Ontario, Canada.

###

Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org