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New Effort to Boost Slack Enrollment

Nearly Two Million Low-Income Americans Will Automatically Get Medicare Drug Discount Cards

Sept. 22, 2004 – In the latest effort to enroll more senior citizens in the Medicare Drug Discount Card Program, the government will automatically send a discount card to nearly two million low-income Americans who get state help to pay Medicare premiums.

More News Expected Tomorrow at Senate Hearing

U.S. Senate Special Committee on Aging Chairman Larry Craig praised the Bush Administration for its efforts to help America’s seniors obtain the new Medicare-approved drug discount cards, and receive additional financial help.

 “Today the Bush Administration announced that over 1.8 million additional American seniors will be mailed a Medicare-approved drug discount card – a card which will save them approximately 20 percent off the prices they are now paying out of their own pockets for medications. In addition, low-income seniors will be advised on how they can receive $1,200 in additional financial help to cover their medication costs,” Craig said. “The average Social Security check is $895 – so I believe $1,200 medication credit should be a big, big help to our most vulnerable seniors.”

Craig noted that he and Medicare Administrator Mark McClellan will meet tomorrow during a forum the Aging Committee is holding about the savings seniors can receive with the discount drug cards. The forum, titled, “Medicare Drug Discount Cards: Measuring the Savings,” will begin at 2:30 p.m. on Thursday, September 23, and will be held in room 628 of the Dirksen Senate Office Building.

 “I believe more good news will be issued at the forum tomorrow,” Craig said.

 

The drug discount cards – randomly selected from among the Medicare-approved providers - will go in the mail next month and can be used immediately to get savings at pharmacies. If dissatisfied with the care they receive through the random process, seniors can choose a different card and will be automatically changed from the original card.

In addition to receiving the card, beneficiaries will also receive instructions on how to activate the $1,200 benefit that is available to low-income seniors. To get this benefit the recipients will have to verify by phone that they meet income guidelines and do not have other drug coverage.

"Seniors with limited means who are struggling to pay for their medicines can save right away," said HHS Secretary Tommy G. Thompson at a news conference today. "We're making it automatic, so those who qualify for the $1,200 credit get it as soon as possible."

The 1.8 million Medicare beneficiaries getting cards can activate the $1,200 additional benefit by calling the randomly selected sponsor or by calling 1-800-MEDICARE.

This new program seems to provide the administration an out from critics who have been calling for automatic enrollment of low-income seniors. Only 1.3 million of 7 million low-income seniors have voluntarily signed on to the program, which provides them a discount card and an additional $600 annual subsidy. The administration has maintained they could not choose a card for these people, which was preventing the automatic enrollment.

Total enrollment in the drug discount card program is 4.4 million people – most of whom were automatically enrolled by HMOs or state welfare programs.

The letters will go to all people who receive state help to pay Medicare premiums in what are known as Medicare Savings Programs (Qualified Medicare Beneficiary, Specified Low-income Medicare Beneficiary, and Qualifying Individual). Those in the Medicare Savings Programs meet the income tests to make them eligible for the credit.

"We are taking aggressive steps to provide literally thousands of dollars in help now through the drug card program," said Centers for Medicare & Medicaid Services (CMS) Administrator Mark B. McClellan, M.D., Ph.D. "There's no reason that anyone who pays for medicines out of their own pocket should choose between paying for drugs and paying for other basic necessities."

The potential credit is $600 per year between now and the end of 2005. Any portion of the credit that is unused at the end of 2004 can be carried over into 2005. Beneficiaries need to sign up by Dec. 31, 2004 to be eligible for the credit.

Beneficiaries who receive letters can call 1-800-MEDICARE or visit www.medicare.gov to see if their favorite pharmacy takes the card they received and what discounts are available on the drugs they take.

CMS is also working with more than 100 community-based organizations across the country to reach seniors and people with disabilities who are struggling with the costs of their medicines and help them enroll in the discount drug cards and the $600 credit if they qualify. These partners include 92 groups that formed the Access to Benefits Coalition for the purpose of helping people with Medicare take advantage of the savings that come with the discount drug cards.

Medicare beneficiaries who do not receive prescription drug coverage through Medicaid are eligible for a Medicare-approved drug discount card. In addition, Medicare beneficiaries whose annual incomes are below $12,569 for singles and $16,862 for married couples are eligible for the $600 credit.

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