Seniors stick to plan they have

[Guest guest]

Seniors stick to plan they have

Cards' use begins Tuesday, but many are slow to act, saying they won't save

money - or they aren't sure

BY DEBORAH BARFIELD BERRY

WASHINGTON BUREAU; Chief economic correspondent Toedtman contributed

to this story.

May 30, 2004

WASHINGTON - Seniors still are coming into Canada for Prescription Drugs, a

storefront in Lake Worth, Fla., to order their medication. The Minnesota

Federation of Seniors still is planning its monthly bus trip to Canada so

seniors can buy cheaper drugs. And the New York State Alliance for Retired

Americans still is ironing out details for a similar trip from New York City

to Canada next month.

As the clock winds down to the start of the Medicare drug discount card

program Tuesday, there are few signs that seniors are jumping on board.

Many seniors still are turning to traditional, proven avenues to buy their

prescription drugs despite promises of huge savings with the new discount

program. Some health experts say seniors may be confused about the card,

cautious about making a change or simply more comfortable with what they

already have.

For many companies offering seniors cheaper drugs online or from Canada,

it's also business as usual. In fact, some say the new program may be

boosting business because seniors who comparison shop notice the greater

savings don't come from Medicare.

" It's natural for people to worry about losing what they have, " said Tricia

Neuman, a Medicare expert at the Henry J. Kaiser Family Foundation. " Many

may want to stick with what they have before signing up for a program that

they're not sure will save them money. "

Federal health officials haven't released enrollment figures but acknowledge

they have to do more outreach, particularly to low-income seniors and

elderly folks of color. For weeks, federal officials have urged seniors to

take their time and compare drug prices. On Thursday, however, they called

on seniors, particularly those with low incomes, to sign up.

" We told them to go window shopping. Now is the time, " said Tommy ,

secretary of Health and Human Services.

Comparison shopping

Betty Sicher of Spring Valley, N.Y., began searching for cheaper prices two

weeks ago, checking out local pharmacies and going on Medicare's Web site.

In the end, the semi-retired nurse decided to continue buying her five drugs

from Canada.

" I was extremely surprised, " she said. " I thought I would find some [prices]

that would be considerably different. For some drugs it was pennies or 50

cents here or 50 cents there. " .

Sicher, 70, can't afford to buy drug coverage so she dishes out $408 at a

Canadian pharmacy for a three-month supply of medicine to treat her

illnesses, including diabetes and high blood pressure. Opting for the

Medicare card would cost her an additional $220.

" I think it's a disgrace that I have to go to Canada, " she said.

Concerns, confusion

Ella Moeller of East Hampton hasn't bothered to shop around. The

retired school teacher has coverage from the South Country school district

paying $5 for a three-month supply of generics and $15 for brand names.

Still, as health care coordinator for the New York State Retired Teachers

Association, she is troubled that seniors will be locked into a card until

the end of the year while drug companies can change prices weekly.

" I don't think the cards for most seniors are going to be a very good

thing, " said Moeller, 66. " People are confused about it. I try to tell

people there is no rush to get these discount cards ... and before they make

a decision to look at all the things that are available. "

With thousands of drugs available on the Web site and 73 companies offering

cards, some advocates say selecting a card can be daunting.

Early this month, Joan Cooney, a board member of the New York Retired Public

Employees Association, comparison shopped on Medicare's Web site using 10

brand-name drugs commonly used by seniors.

By the middle of this month, she said, prices had dropped. She worries that

seniors won't know the actual price of their drugs when they enroll.

" Everything is weighted in favor of the industry. It is not weighted in

favor of the consumer, " said Cooney, 72, a retired statistician from the

state Health Department. " Is this going to be the way they're going to

approach the drug insurance plan in 2006? "

Cooney said she's telling seniors, who like herself have drug coverage, not

to sign up. " If you're not used to looking at this stuff - a lot of it will

go by people, " she said.

Federal health officials said they have streamlined the enrollment process,

hired more staff to answer questions and allowed states, including New York,

to automatically enroll qualified low-income seniors. They also are giving

groups money to help enroll seniors.

Officials say the card can save seniors as much as 17 percent on brand-name

drugs and more as companies compete.

Since the Medicare Web site went up April 29, the number of discount card

programs available to Queens and Long Island seniors has more than doubled,

a Newsday evaluation showed. The cost of 10 of the most used drugs for

seniors dropped between 2 percent and 27 percent.

Still, interest in programs such as the Minnesota Senior Federation's

monthly bus trips to Canada hasn't tapered off.

" Whatever is the cheapest way to get prescription drugs is what they'll do, "

said Beskar, the trip coordinator.

Barbara Weltner, owner of Discount Drugs of Canada in West Palm Beach, Fla.,

said she hasn't lost any of her 1,500 customers, many of whom are native New

Yorkers. " The smarter senior citizens are coming here because they're saving

money and they've done their homework, " said Weltner, a Glen Cove native.

Falcone, manager at Canada for Prescription Drugs in Lake Worth, Fla.,

said the company has " never been so busy. " Medicare discounts have yet to

prove they are cheaper than Canadian drugs, Falcone said.

Since March, the company also has been urging seniors to consider generics,

which tend to be cheaper in the States.

Falcone said the push now is to get seniors to first look at a " generic

alternative before jumping into the Canadian thing. "

" Doing the right thing in this business is making sure that the client is

getting the lowest price for their medicine whether from Canada or our

American pharmacy, " he said.

Canadian pharmacies that sell prescription drugs to U.S. seniors haven't

been hurt by the card, said MacKay, executive director of the Canadian

International Pharmacy Association. " If anything it's getting people to

recognize their options, " he said, adding that the pharmacies are not

competing with the card. " Those who waited for the discount card to be their

major savior, it's not as good an option as they thought. "

Drugstore.com, based in Bellevue, Wash., said it could benefit as more

seniors comparison shop and notice its competitive prices. The company will

accept some Medicare cards.

" There seems to be more activity as people are checking out prices, checking

out the best deals, " said spokesman Greg French. " What this is doing is

empowering consumers because they finally have access to price information. "

Chief economic correspondent Toedtman contributed to this story.

Copyright © 2004, Newsday, Inc.