Savings in the cards
Picking the best Medicare drug discount card is tougher than ever
If you don't qualify for the $600 low-income credit, the decision of whether to use the new card is less clear. "It's drug by drug, person by person," says Burns. First, are you already enrolled in discount card programs? The pile of plastic already issued by nonprofits like AARP, pharmaceutical companies, and drugstore chains may get you a better deal than the Medicare-approved cards. A report by the Medicare Rights Center found that someone living in Washington, D.C., would receive about the same discount on 10 common drugs from an existing card sponsored by a pharmacy benefit manager as he or she would from the Medicare-approved card.
Those earning a modest income--too high to qualify for the government's $600 credit but low enough to be helped out by programs sponsored by states or manufacturers--should also do their homework before signing up. The Medicare Rights Center report also found that an older adult earning $17,000 a year, living in Washington, D.C., and taking the drugs Lipitor and Celebrex would do better with a Pfizer Share Card, which gives the drugs for $30 per month, compared with $147 with the Medicare-approved card. (The report notes that the Medicare card is more prominently featured on the CMS website, which might mislead people into signing up for a lesser bargain.)
Those SPAP s--which are available in more than 30 states--may also provide better benefits. In Illinois, for example, those making less than $21,218 ($28,480 per couple) might get a better deal under the state's Circuit Breaker program. New York has even higher income limits--$35,000 for individuals and $50,000 for couples--to participate in its cost-sharing EPIC (Elderly Pharmaceutical Insurance Coverage) program. Show your Medicare card at an in-state pharmacy in California, and you'll pay no more than what the state Medicaid program pays for drugs, plus 15 cents, no matter what your income. Check out your state's program to see if it makes the Medicare cards redundant. (AARP has a good guide on its website: http://www.aarp.org/bulletin/your money/Articles/statebystate.html .)
So, are the new discount cards worth the effort? Clearly, there's no easy answer to that question. But the new program provides a good incentive for people who haven't waded into the thicket of options to spend some time researching how Medicare-sponsored cards measure up to the other options. Those who don't have Internet access or who find the process confusing can check with their state health insurance assistance program (known as SHIP) or a community group for assistance. Or ask a trusted friend or neighbor. "There's a lot more help out there than people realize," says James Firman, who heads the Access to Benefits Coalition, which helps low-income Medicare beneficiaries negotiate the system.
One helpful tip for everyone: Beware of scams. There are so many Medicare-endorsed cards that it's hard to keep track of them all, and con artists are taking advantage of that confusion, trying to sell seniors bogus cards that cost $30 per month instead of per year. AARP says to beware of anyone hawking drug discount cards door to door, by E-mail, or on the phone. The legitimate cards require that you, not a salesperson, make the initial contact. And don't respond to phone calls or E-mails asking for personal information in conjunction with your card. If you want to know if a card is legit, call 1-800-MEDICARE to check.
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