Q & A: Medicare drug-discount card

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Q: What is the Medicare-approved drug-discount card?

A: Congress approved the discount cards last year to help seniors pay their drug costs until the new Medicare prescription-drug plan becomes available in 2006. The cards do not provide insurance coverage, and the government cautions people from dropping any prescription-drug coverage they may have for a discount card. Private companies and organizations will sell the cards, which Medicare says will provide cardholders with discounts on the retail price of drugs.

Q: Can anyone on Medicare buy a drug-discount card?

A: Almost every Medicare enrollee is eligible. The only people who aren't are those who have outpatient drug coverage through Medicaid.

Q: How much do the cards cost?

A: The prices range from free to a maximum of $30. The cards being sold beginning next month are good through the end of the year. A second round of cards, for discounts in 2005, will go on sale late this year.

Q: Can I get a Medicare-approved discount card if I already use a different discount card from a pharmacy, drug company or other source?

A: Yes. You can have other discount cards along with a Medicare-approved card. Use whichever card gives you the best deal at the time.

Q: How much will I save with the Medicare-approved card?
 
A: That depends on several factors, including which card you choose, which drugs you buy and where you buy them. Medicare says the cards are intended to save buyers 10 to 15 percent on their total outpatient prescription-drug costs and up to 25 percent on certain drugs. But the savings could vary dramatically. Each drug can be discounted at different rates, and companies issuing the cards can raise or lower discounts weekly. The very poor and people who currently pay full retail prices for drugs are likely to get the most benefit.

Q: Will all my prescriptions be discounted by a Medicare-approved card?

A: That depends. Some cards may offer discounts on all drugs. Others may discount only certain drugs, but at deeper reductions.

Q: Can I use the discount card at any pharmacy?

A: No. Different cards will be accepted at different pharmacies. Medicare requires card sponsors to have several, but not all, pharmacy options. Card sponsors can offer a mail-order option, too. Carefully review the list of participating pharmacies for any cards you're considering.

Q: Can I get a Medicare-approved discount card if I also have a Medigap policy?

A: Yes. You can apply the card discount on top of your Medigap prescription-drug insurance. Check with your insurer if you have drug coverage through a retiree plan or another private plan.

Q: Can I get a Medicare-approved drug discount card if I'm in a Medicare managed-care plan?

A: Yes. You will get your Medicare discount card through your managed-care plan. If your managed-care plan doesn't offer a card, you can choose any Medicare discount card offered in your area.

Q: How do I get a card?

A: You can get enrollment forms at www.medicare.gov. Drug-card sponsors also will likely mail applications to Medicare enrollees. Forms also may be available at some pharmacies and doctors' offices.

Sources: Centers for Medicare & Medicaid Services, AARP, Medicare Rights Center