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List of Approved Medicare Drug Cards Released

HHS Launches Website to Compare Cards

March 26, 2004 - HHS Secretary Tommy G. Thompson yesterday announced the approval of 28 private sponsors to provide seniors and people with disabilities savings on their prescription drugs, beginning June 1. With the new cards, Medicare beneficiaries will receive discounts on prescription drugs, and low-income beneficiaries may receive an additional $600 to pay for their prescription medicines in both 2004 and 2005.

Secretary Thompson said the competition between organizations offering cards -- as well as the public display of the prices the cards offer for prescription medicines -- will help drive down prices so that seniors get the best savings on their medicines.  HHS will offer several tools to help seniors compare cards and choose the card that provides them with the best savings.

“Seniors will soon be able to get a discount card to help them save money on their prescription drugs, and a $600 credit each year will give low-income seniors even more relief,” Secretary Thompson said. “With the new cards, the benefits of the new Medicare law will soon be a reality for millions of Americans who need help paying for prescription drugs.”

All Medicare beneficiaries, except those who already receive outpatient drugs through Medicaid, will be able to enroll in a discount card program starting in May. The cards’ savings will take effect June. 1. The card providers may charge an annual enrollment fee of up to $30. There is no enrollment fee for people who qualify for the $600 credit.

Medicare-approved cards will be marketed to seniors by organizations offering the cards. Seniors will sign up for the cards directly with the organization offering the card they choose. HHS will provide seniors help in selecting a card.

Starting in late April, beneficiaries will be able to compare prices of drugs offered by the drug card programs at www.medicare.gov or by calling 1-800-MEDICARE.  This information will help them compare discounted prices negotiated by card sponsors, as well as the enrollment fees, and other card program features from card to card.  Customer service representatives at 1-800-MEDICARE also will be able to answer questions about the program, help them compare drug cards on price and network pharmacies, and refer callers to other appropriate resources. They will also mail the results of the comparison to seniors. 

HHS and the Centers for Medicare & Medicaid Services are aggressively reaching out to seniors and people living with disabilities to inform them of benefits available to them under the prescription drug card program. Those efforts will include:

HHS will issue a detailed “Guide to Choosing a Medicare-Approved Drug Discount Card” for beneficiaries that explains the program, including eligibility and enrollment information, and provides step-by-step guidance for comparing discount cards and choosing one. The booklet will be posted next week at www.medicare.gov, and printed copies will be available for free in April through 1-800-MEDICARE.

HHS will work with State Health Insurance Assistance Programs to distribute educational material to seniors to help them make choices.

HHS will continue its 1-800-MEDICARE advertising campaign to inform seniors about the discount cards and place an emphasis on explaining the low-income benefit. The campaign will include television, radio, newspaper and Internet advertising in both English and Spanish.

HHS will mail a shorter, overview publication directly to every Medicare household starting late next month.

The Social Security Administration will mail a separate letter to Medicare beneficiaries with lower incomes, who are likely to be eligible for the $600 credit. 

“We will make it as easy as possible for Medicare beneficiaries to choose the best card to meet their needs,” Secretary Thompson said.  “We’re announcing these cards now so that seniors and those who assist them can start learning about the options that they will have.  Starting next month, detailed information will be available on the prices seniors can get for the drugs they need.”

The cards will provide a $600 annual credit to eligible low-income Medicare beneficiaries.  Individuals whose income is less than $12,569 each year or married couples whose income is less than $16,862 may qualify for this additional help.  Medicare will cover the cost of the enrollment fee for these low-income cardholders.  HHS will work aggressively to reach eligible low-income beneficiaries and enroll as many as possible in the new program.

“It’s important that Medicare beneficiaries have all the information available to make decisions about choosing the card that best fits their needs,” said Mark B. McClellan, Ph.D., M.D., incoming administrator for HHS’ Centers for Medicare & Medicaid Services.  “We know that any new program brings lots of questions and a need for good information.  We want to make sure that seniors and people with disabilities can find clear and unbiased information as easily as possible.”

The new Medicare drug card program was included in the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) as a means to provide seniors immediate assistance on prescription drug costs before the comprehensive Medicare drug benefit starts in 2006. In addition to savings on prescription drugs, the new law also improves preventive benefits and enhances access to doctors and medical care for seniors, especially those living in rural areas. 

HHS’ Centers for Medicare & Medicaid Services selected 28 general card sponsors from the applicants.  Sponsors are now being asked to sign contracts with Medicare so that they can begin enrolling seniors and disabled Americans in May.

Under the prescription drug card program, approved cards must offer discounts on prescription drugs for all of their Medicare enrollees.  At least some of these savings must come from manufacturer rebates. Card sponsors also must publish prices for the prescription drugs their cards will cover, provide access to an extensive retail pharmacy network, operate call centers and have a process to respond to beneficiary concerns.

Some card sponsors will be offering more than one card program to seniors and people with disabilities. In addition, 43 sponsors, representing 84 Medicare Advantage health plans, will offer cards to the beneficiaries enrolled in their health plans.

A list of Medicare-approved card sponsors is below.

* I/T/U pharmacy means a pharmacy operated by the Indian Health Service, an Indian tribe, or tribal organization, or an urban Indian organization.

Note: Several drug card applicants submitted more than one application, but are represented on the list only once. A total of twenty-eight applicants are approved. 

* An exclusive card’s state presence reflects only the service areas of the Medicare managed care plans that are offering such a card under a Medicare managed care organization's contract.  Therefore, an exclusive card may not provide coverage across an entire state.