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Medicare Discount Drug Card Web Site
Medicare Discount Drug Card Web Site Goes Live
A Web site giving seniors information about choosing a Medicare prescription drug card will go live April 1, with price comparisons of medications available on the site April 29, Health and Human Services Secretary Tommy G. Thompson said March 31. Thompson and other HHS officials at a press briefing said the Web site, along with Medicare's toll-free telephone line (1-800-MEDICARE), will alter the way seniors purchase drugs by giving them price and other information, unleashing market competition that will lower drug prices. The information will be available at http://www.medicare.gov , under the section entitled "Prescription Drug and Other Assistance Programs." The site ultimately will allow seniors to chose from 49 cards that offer three types of drugs in 209 categories, Thompson said. Seniors, and the general public, will be able to enter up to 25 prescription drugs they are taking and receive pricing information about the medications, the cost of the card, if any, and the nearest pharmacy that accepts the card, HHS officials said. All seniors, except those already with drug coverage through Medicaid, are eligible for the program. They can start enrolling in the program in May. The Centers for Medicare & Medicaid Services projects about 7.3 million seniors will enroll in the program, with 4.7 million of this population eligible for low-income assistance. In addition to seniors, Thompson said Congress, the media, insurers, providers, and others will be examining the Web site for the costs of medications offered by various cards.
Price Transparency
The Web site "will have a tremendous . . . impact on lowering prices and making things much more competitive," Thompson said. HHS March 25 announced it had approved 28 private entities and 43 managed care plans as sponsors of the discount cards, which will be available to seniors in June. The cards, the first major benefit for seniors of the new Medicare prescription drug law, are expected to save beneficiaries 10 percent to 25 percent on the cost of their medications, according to HHS. The card program is temporary and will end when the law's comprehensive drug benefit begins in 2006. Low-income seniors will have $600 put on their card annually to help defray the cost of medications and they will not have to pay the annual enrollment fee, which could be as high as $30. However, some card sponsors are likely to waive the enrollment fee to attract business, Thompson has said. Price comparisons and other information will only be available for the cards sponsored by private entities, not for the 43 managed care plans approved to offer a card, HHS said.
Finding a Card
Beginning April 1, seniors will be able to enter various information on the Web site, including annual income, ZIP code, and marital status to help determine which card is available in their area and whether they qualify for the $600 in financial assistance. The information will also be used to alert low-income seniors that they are eligible for Medicaid if they are not already enrolled in that program, HHS officials told reporters. Customer contact information for each card also will be available, they said. Beginning April 29, seniors will be able to enter information about the medications they are taking and will get a price list from the lowest to highest cost to compare, Thompson said. The site also will display alternative choices if a medication is unavailable and list generics if applicable, officials said. The site will display retail, mail order, and generic prices and will contain other information for seniors about how to save money on medications, they added.
Positioning For 2006
Seniors will be able to change cards only once during the course of the program, but HHS officials said card sponsors will be motivated to keep drug prices low to compete with other cards and create a customer base for the comprehensive drug benefit in 2006. "This is about positioning for 2006," Dennis Smith, director of the Center for Medicaid and State Operations at CMS, told reporters. Seniors are the only market for some of the medications covered by the cards, CMS Administrator Mark B. McClellan told reporters. Thompson predicted seniors will use the time they have to shop for the best drug prices, and will talk with fellow seniors about the best prices available. "Seniors have time to price shop," he said. Smith said CMS by April 7 will decide whether to allow seniors in Medicare Savings Programs to automatically enroll in the card, telling reporters the drug law statute defines the benefit as voluntary and that it is unclear whether this population would have to sign a form allowing them to get the additional $600 in financial assistance. Several options are being examined by the agency in this area, he added. CMS and the Social Security Administration in early April will send a mailing to seniors alerting them to the Web site and the discount card, officials said.
A Web site giving seniors information about choosing a Medicare prescription drug card will go live April 1, with price comparisons of medications available on the site April 29, Health and Human Services Secretary Tommy G. Thompson said March 31. Thompson and other HHS officials at a press briefing said the Web site, along with Medicare's toll-free telephone line (1-800-MEDICARE), will alter the way seniors purchase drugs by giving them price and other information, unleashing market competition that will lower drug prices. The information will be available at http://www.medicare.gov , under the section entitled "Prescription Drug and Other Assistance Programs." The site ultimately will allow seniors to chose from 49 cards that offer three types of drugs in 209 categories, Thompson said. Seniors, and the general public, will be able to enter up to 25 prescription drugs they are taking and receive pricing information about the medications, the cost of the card, if any, and the nearest pharmacy that accepts the card, HHS officials said. All seniors, except those already with drug coverage through Medicaid, are eligible for the program. They can start enrolling in the program in May. The Centers for Medicare & Medicaid Services projects about 7.3 million seniors will enroll in the program, with 4.7 million of this population eligible for low-income assistance. In addition to seniors, Thompson said Congress, the media, insurers, providers, and others will be examining the Web site for the costs of medications offered by various cards.
Price Transparency
The Web site "will have a tremendous . . . impact on lowering prices and making things much more competitive," Thompson said. HHS March 25 announced it had approved 28 private entities and 43 managed care plans as sponsors of the discount cards, which will be available to seniors in June. The cards, the first major benefit for seniors of the new Medicare prescription drug law, are expected to save beneficiaries 10 percent to 25 percent on the cost of their medications, according to HHS. The card program is temporary and will end when the law's comprehensive drug benefit begins in 2006. Low-income seniors will have $600 put on their card annually to help defray the cost of medications and they will not have to pay the annual enrollment fee, which could be as high as $30. However, some card sponsors are likely to waive the enrollment fee to attract business, Thompson has said. Price comparisons and other information will only be available for the cards sponsored by private entities, not for the 43 managed care plans approved to offer a card, HHS said.
Finding a Card
Beginning April 1, seniors will be able to enter various information on the Web site, including annual income, ZIP code, and marital status to help determine which card is available in their area and whether they qualify for the $600 in financial assistance. The information will also be used to alert low-income seniors that they are eligible for Medicaid if they are not already enrolled in that program, HHS officials told reporters. Customer contact information for each card also will be available, they said. Beginning April 29, seniors will be able to enter information about the medications they are taking and will get a price list from the lowest to highest cost to compare, Thompson said. The site also will display alternative choices if a medication is unavailable and list generics if applicable, officials said. The site will display retail, mail order, and generic prices and will contain other information for seniors about how to save money on medications, they added.
Positioning For 2006
Seniors will be able to change cards only once during the course of the program, but HHS officials said card sponsors will be motivated to keep drug prices low to compete with other cards and create a customer base for the comprehensive drug benefit in 2006. "This is about positioning for 2006," Dennis Smith, director of the Center for Medicaid and State Operations at CMS, told reporters. Seniors are the only market for some of the medications covered by the cards, CMS Administrator Mark B. McClellan told reporters. Thompson predicted seniors will use the time they have to shop for the best drug prices, and will talk with fellow seniors about the best prices available. "Seniors have time to price shop," he said. Smith said CMS by April 7 will decide whether to allow seniors in Medicare Savings Programs to automatically enroll in the card, telling reporters the drug law statute defines the benefit as voluntary and that it is unclear whether this population would have to sign a form allowing them to get the additional $600 in financial assistance. Several options are being examined by the agency in this area, he added. CMS and the Social Security Administration in early April will send a mailing to seniors alerting them to the Web site and the discount card, officials said.
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Last updated: 03/13/2009