Medicare Drug Discount Card

The new Medicare-approved drug discount card program has begun, and with it, the flood of complaints and concerns about potentially fraudulent companies.

What are the drug discount cards?
The cards are here to fill a gap before the broader Medicare prescription coverage arrives in 2006. The U.S. Department of Health and Human Services lists 48 different companies who will offer drug discount cards to Medicare Part A and B participants. These cards MAY offer discounts of 10%-25% on outpatient prescription drugs, but seniors must do their homework to select the plan that works best for them.

Who are the companies?
Large private companies like pharmacies or insurance groups have applied to Medicare officials to become approved discount card providers. Each company must meet certain standards like

• Providing quality customer service
• Being a stable, reputable business
• Having a complaint handling process in place, and
• Have experience offering prescription drug discounts

Who is eligible to receive the card?
Medicare Part A and B recipients are eligible to apply for the discount drug cards if they do not receive prescription drug benefits through Medicaid.

In addition, low-income individuals may also be eligible to receive up to $600 per year towards the purchase of their outpatient prescription drugs.

How do I apply?
Visit www.medicare.gov
Call 1-800-Medicare
Call SHIP -- State Health Insurance Assistance Program
at 1-800-333-4114
Call the company who is offering the discount card you want

How do I select a card?
Since each company is allowed to determine which states they will offer their discount cards in, which drugs will be discounted and how much that discount will be, seniors and their families need to do their homework. Research each company's list of drugs and discounts carefully to determine which program works best for you. If you are married, both husband and wife need to select their own discount company. You should review the company's discount prescription card annually.

What else should I be aware of?

• The discount drug card is not insurance and is not a substitute for other insurance you may already have that covers prescription drugs
• Medicare approved companies CANNOT solicit their cards door to door or conduct cold-calling to solicit their cards. Therefore you should not receive calls from a card sponsor unless you have requested information from them. So do not provide your personal information to anyone who calls or comes to your door.
• All Medicare approved companies MUST use the "Medicare Approved" seal on their enrollment application and discount cards.
• The companies can change its list of drugs and/or their amount of discounts on a weekly basis and are not required to provide you with their drug and discount change policy UNLESS you ask them for it.
• The discounts on these cards are not in addition to discounts received from other private health insurance or state programs.
• Once you select a card provider, you may not change to another provider in that same calendar year unless you have a major change in your life circumstances as qualified by Medicare.
• You can only be enrolled in one discount drug program at a time.
• If you live in 2 different states, you must be sure to select a provider that offers coverage in both states as you will not be allowed to carry two cards.
• You must go to a pharmacy that is listed in the directory of the company you select.
• The company can only charge an annual enrollment fee of up to $30. They will not be allowed to charge maintenance or processing fees.
• For more detailed information visit Medicare's article.

This report is general in nature and not intended as a reliability report on any company, service or product.