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New Report: Seniors Will Save An Average Of Over
$1,200 With Medicare Drug Discount Cards
Chairman Of The U.S. Senate Special Committee On
Aging Urges Seniors To Sign Up Now
Aug. 19, 2004 - A newly released independent
analysis of the Medicare-approved drug discount cards has found that
average seniors participating in the new program will save over $1,200,
on average, for their prescription drug purchases before the full
Medicare drug benefit goes into effect in 2006, according to a news
release by the U.S. Senate Special Committee on Aging.
The new study examined 150 prescription drugs used
most often by those on Medicare, and found that many of the cards saving
nearly 20 percent off the retail price of drugs.
The report was conducted by the The Lewin
Group, a nonpartisan nationally recognized economic analysis
company.
This new report comes on the heels of other recent
reviews -- by the Kaiser Family Foundation,
the
American Enterprise Institute and
Medicare -- which have also documented the cost savings
seniors are achieving.
"Despite some of the unfortunate misinformation
going around, this new report, and others like it, show that seniors who
don't sign up for the Medicare approved drug discount cards are leaving
money on the table. I again encourage seniors who need help to check out
what is available," said Sen. Larry Craig, Chairman of the committee.
The savings vary depending on the state you live in
and which card you sign up for. In Craig's home state of Idaho, he said,
a typical senior will spend $3,444 on prescription medications during
the eighteen month period before the full Medicare program goes into
effect in January of 2006. During that time, the new study found that an
Idaho senior with a Medicare-approved discount drug card could save
$1,057.
Researchers said that low-income seniors would save
the most money because they would receive $600 federal low-income credit
to help them purchase their medications and be eligible for additional
drug company help if and when their $600 in assistance has been spent.
Under the new benefit program, low-income seniors who qualify will
receive $600 in 2004 and another $600 in 2005 to help buy medications.
"Those that need help with their prescriptions
should call 1-800-MEDICARE to find out how they can get the discount
card that will best meet their needs. Telephone lines are open 24 hours
a day, seven days a week. Over 3000 people are now available to answer
your call, and waiting times are down to two minutes," Craig said.
Before you call 1-800-MEDICARE (1-800- 633-4227),
Sen. Craig advises that you:
* Have with you a list of the names of the drugs
you take, the size, and how often you take them.
* Know your total monthly income -- you may qualify
for the $600 per year in low income assistance. Your recent income
statements or tax forms may be helpful in figuring out your monthly
income.
The temporary Medicare-approved drug discount
program will be replaced in 2006 when the full benefit goes into effect.
Starting in 2006, about one in four seniors on Medicare will have a
federal subsidy of 96-98 percent to cover their drug costs. Two out of
every three seniors already have drug coverage from other sources which
they can keep when the new program goes into effect.
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