The new law will provide prescription drug benefits for the first time in the history of the Medicare program
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The 1,477 Medicare recipients in Daviess County soon will be able to save money on their prescription drugs as the nation’s new Medicare law goes into effect.
The new law passed by Congress and signed by President Bush will provide prescription drug benefits for the first time in the history of the Medicare program to people age 65 and older and to people with disabilities.
Starting May 1, Medicare beneficiaries will be given the opportunity to sign up for a Medicare-approved prescription drug discount care for an enrollment fee of no more than $30 a year. Private vendors will be making those cards available. Once signed up, cardholders can start using the discount cards in June, which will save them an estimated 10-25% off the price of most drugs.
In addition, low-income seniors (incomes of less than $12,123 for singles and $16,362 for couples) can get the discount card plus an annual credit of up to $600 that can be applied to the cost of medicine.
The discount card is an interim step to give immediate relief to seniors until Medicare’s comprehensive drug benefit program goes into effect in 2006. When the full program starts, Medicare beneficiaries will be able to enroll in plans that cover prescription drugs and save an average of 50% off their drug costs. Low-income seniors will pay no more than $5 per prescription.
Since the new program is entirely voluntary, Medicare recipients can choose to make no changes in their existing coverage.
The Missouri State Medical Association (MSMA) has joined with other health care and senior citizens groups to educate seniors about the benefits of the new program.
“This new law means senior citizens will get some relief from high drug prices beginning in June this year and much more relief beginning in January 2006,” said Dr. Frederick DeFeo, president of MSMA, Missouri’s largest physician association. “This is a big step forward for health care in this country. It’s important that seniors become informed about the new program so they can take advantage of it right away.”
Medicare beneficiaries without outpatient drug coverage have paid among the highest prices for prescription drugs, as much as 20% higher than people who have drug coverage.
The new law, which was passed by a bipartisan Congress and signed in December by President Bush, is supported by more than 140 patient groups, health care organization and employers. For more information about the discount program, call 1-800-MEDICARE or log on to www.medicare.gov.
Questions & Answers about the Medicare Prescription Drug Improvement and Modernization Act of 2003
What is the new law and how will it affect senior citizens?
The law is officially called the Medicare Prescription Drug Improvement and Modernization Act of 2003. Signed into law on Dec. 8, 2003, it preserves and strengthens the current Medicare program by extending to senior citizens important new coverage for prescriptions and preventive benefits, with extra help for those with low incomes.
How will it work?
Starting May 1, Medicare recipients will be able to sign up for a voluntary, Medicare-approved drug discount card to receive savings on prescription drugs. Medicare is contracting with private companies, which will offer the discount cards for an annual fee of no more than $30. Once enrolled, cardholders will be able to save an estimated 10-25% off many drugs. In addition, low-income seniors (no more than $12,123 for singles and $16,362 for married couples) can qualify for up to $600 in assistance, which Medicare will credit to the card to help pay for prescription drugs, and the enrollment fee will be waived.
Who can get a Medicare-approved drug discount card?
Almost everyone with Medicare can sign up for a drug discount card. The only people who can’t get a card are those with outpatient drug coverage through Medicaid.
Are Medicare beneficiaries required to sign up for the discount card?
No. The Medicare-approved drug discount cards are voluntary. If a person chooses not to enroll, it will not impact his or her Medicare status.
When will the discount cards be available?
Card sponsors are allowed to start enrolling people as early as May 1, however, some companies may not be ready to start enrolling as early as May. Once the cards are available, people can sign up anytime after that and until Dec. 31, 2005, when this program ends and the new comprehensive prescription drug benefit begins.
Will the cost go up for people who enroll after May?
No. No matter when one joins, the annual enrollment fee can be no more than $30. There is no penalty or extra charge for joining at a later date.
How does a person sign up for the drug discount card?
Once the discount cards are available, all Medicare-eligible beneficiaries will be contacted through the mail by Medicare with the approved drug discount card pharmacies in that region.
How much will the discount card save on drugs?
Savings are estimated to be 10-25% on many drugs. Savings will vary and might not apply to every medicine.
What is the next benefit program that starts on Jan. 1, 2006?
After the discount card program ends on Dec. 31, 2005, the new prescription drug coverage program will enable all people with Medicare to enroll in plans that cover prescription drugs. It will save senior citizens an estimated 50% off their prescription drug costs.
How will that program work?
Plans might vary, but in general, this is how they will work: A person will choose a prescription drug plan and pay a premium of about $35 a month. For prescription drug expenses, the Medicare recipient will pay the first $250 (the “deductible”), then 25% of prescription drug costs up to $2,250, while Medicare will pay the other 75%. Once drug costs reach $2,250, the Medicare recipient will pay 100% of the costs, until they reach $3,600. At that point, Medicare will begin to pay 95% of drug costs after the patient has spent $3,600.
Will low-income seniors get extra assistance?
Extra help will be available for people with low incomes and limited assets. Most significantly, people with Medicare in the greatest need won’t have to pay the premiums or deductible for prescription drugs and will be required to pay only a small co-payment for each prescription. The income limits will be set in 2005.
Where can a person get more information?
Over the next several months, Medicare will provide more detailed information, including letters, fact sheets and a Medicare Guide with information about choosing a Medicare-approved drug discount card. People with questions also may call 1-800-MEDICARE.