New drug discount cards on the way

People enrolling in a drug plan this summer should choose carefully. One pick, and they will be locked in until 2005.

Seniors will see the first fruits of last year's Medicare prescription bill in May when they'll be able to choose among dozens of private drug discount cards.

In Florida, 18 companies, including the giant Walgreens pharmacy chain, pharmacy benefits manager Medco Health Solutions and insurer Blue Cross and Blue Shield of Florida will offer the cards to anyone on either traditional Medicare or Medicare HMOs.

In the Tampa Bay area, several Medicare HMOs, now known as Medicare Advantage plans, also will offer cards to their members.

"Seniors will never be on their own again when they're buying drugs," said Dr. Mark B. McClellan, incoming administrator for the Centers for Medicare & Medicaid Services.

The private discount cards, which will go into effect in June, are intended to be an interim step to bridge the gap until Medicare coverage of prescription drugs begins in 2006.

Though details on the individual cards and their benefits are not yet available, by law the annual enrollment fee will be capped at $30.

Any enrollment fee will be waived for people with annual incomes of less than $12,569 and married couples with incomes under $16,862. Low-income seniors will also be eligible for a $600 prescription credit both this year and in 2005.

CMS's McClellan promised that, beginning in late April, his agency will help seniors sort through the dizzying array of options that will be offered by the card providers. This assistance will be available on the agency's Web site (www.medicare.gov) or by calling toll-free 1-800-MEDICARE.

Among other issues, seniors will have to decide whether it makes economic sense to buy a discount card at all given their monthly expenditures on prescription drugs. For people with high monthly drug bills, the savings may be considerable. Seniors who use few drugs, or have ordered less expensive drugs from Canada, may not feel the voluntary discount cards are worth the cost.

McClellan said seniors will be able to know exactly what they would pay for a specific drug under each card before they enroll, rather than relying on vague percentage-off claims. "The plans have to make available actual prices people will be paying at specific pharmacies in their area," he said. "Seniors will be able to find the bottom-line information they care most about."

Such information is critical before choosing a plan because, once enrolled, seniors will be locked into the plan for the remainder of the year. They will be able to switch plans in 2005.

McClellan said seniors won't be allowed to move in and out of discount plans because card sponsors need to be guaranteed a certain membership in order to maximize their bargaining power with drug suppliers.

"If people are switching in and out, it will be harder for the sponsors to get discounts," he said. "And we would expect some cards will be able to lower their prices because they've got seniors banding together."

Although card sponsors will be able to raise drug prices once the plans begin, McClellan said his agency will be monitoring the cards closely.

"We're going to be watching to make sure we don't see any bait-and-switch tactics," he said. "We'll be looking closely for any behavior that might hurt the consumer."

- Kris Hundley can be reached at hundley@sptimes.com or 727892-2996.

Q: How soon can I get a drug discount card?

Enrollment is in May; discounts become effective in June.

Not until late April.

By calling Medicare toll-free at 1-800-MEDICARE or checking its Web site (www.medicare.gov) The cards' sponsors will also be advertising their plans through the mail and ads.

By law, enrollment fees cannot exceed $30 a year. The fee will be waived for low-income seniors, who will be eligible for a $600 annual credit.

Each card sponsor will have to publicize actual prices that will be charged for specific drugs under its discount plan before seniors enroll.

After enrolling in a plan in May, seniors will be unable to change to another discount card until year end. They may switch to a new plan for 2005.

The cards are intended to help seniors save on drugs until the mew Medicare prescription benefit starts in 2006.

Yes. You might be eligible for one through your insurer and through a general card sponsor such as Walgreens or Medco Health Solutions.