Medicare Drug Card enrollment begins

Enrollment in the new Medicare Prescription Drug Discount Card program and the Transitional Assistance Program will begin on May 3. The program will take effect on June 1. This temporary prescription drug benefit will provide help to seniors with their prescriptions until the new drug benefit program begins in January 2006.

The discount card will save seniors as much as 40 percent on generic drugs, and 20 percent on brand name drugs. There is a $30 enrollment fee, and that enrollment fee will be reflected on the first prescription that the beneficiary has filled. Pharmacies across the United States have been approved to participate with the discount program, and will assist with enrolling seniors with the paperwork involved via the internet, mail, or fax.

Some of the local businesses approved to participate in the program include Wegmans, Eckerd, Wall-Mart, Rite Aid, K-Mart, CVS and the Medicine Shoppe. Seniors are encouraged to call 1-800-MEDICARE or go to www.medicare.gov to compare discount cards. These businesses have contracted with approved card sponsors such as Aetna Health, Express Scripts, Caremark, WellPoint, Advance PCS and Independent Health to offer the lowest discount prices on prescription drugs. There will be over 30 different discount cards to choose from. Seniors should consider how many prescriptions they have filled each year, the amount they pay through the insurance they now have, and tally the benefits of using the medicare discount card, along with the annual fee. The medicare program and local pharmacies can assist in deciding which of the 30 plus programs to enroll in.

The Transitional Assistance Program is for seniors with lower income. In addition to waiving the $30 enrollment fee, the participants are eligible for a discount card of $600 each year in 2004 and 2005. Single seniors making less than $12,569 per year and married couples making less than $16,862 per year are eligible for this program: however, if the applicant is eligible for assistance with prescription drugs through Medicaid, TRICARE (Military Health System), FEHBP (Health Insurance for Federal Employees or retirees) or an employer group health plan, they may not receive the cash subsidy.

Participants in the Transitional Program will either pay 5 percent or 10 percent of the cost of the prescription. With an income above $9,310, participant will pay 10 percent of the cost of the prescription. Participants below $9,310 will pay 5 percent of the prescription. The remaining cost of the prescription will be deducted from the $600 credit allowed. For example, if a prescription is $100, the participant with an income above $9,310 will pay 10 percent of the prescription, which is $10. The remaining balance of $90 is then deducted from the $600 allowed, leaving their balance at $510. The balance of the remainder is rolled over to the year 2005.

The United States Department of Health and Human Services has issued a "Guide to Choosing a Medicare-Approved Drug Discount Card" brochure which includes eligibility requirements and enrollment information, as well as ways to compare discount cards. The medicare website will have the discount card information posted after April 29. Once enrolled in a discount program, participants cannot choose a different plan except during the annual election period, which is November 15 through December 31. The EPIC (New York State prescription plan for seniors) plan may still be used with the medicare drug discount plan.

That will change when the new prescription plan from Medicare takes effect in 2006.