Fwd: [RD] CURR: HHS RELEASE--MEDICARE-APPROVED DRUG DISCOUNT CARD PROGRAMS

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In a message dated 12/10/2003 4:22:45 PM Eastern Standard Time, calfieri@... writes:

Date: December 10, 2003For Release: ImmediatelyContact: CMS Public Affairs(202) 690-6145Headline: HHS ANNOUNCES IMMEDIATE STEPS TO MAKEMEDICARE-APPROVED DRUG DISCOUNT CARD PROGRAMSAVAILABLE NEXT SPRINGHHS Secretary Tommy G. today announced an interim final regulationfor the Medicare Prescription Drug Discount Card Program, designed to helppeople who are covered by Medicare with the cost of prescription drugs.Individuals will be able to enroll in a Medicare approved prescription drugdiscount program beginning in spring of 2004.The regulation outlining the new drug discount card program is the firstaction resulting from the Medicare Prescription Drug, Improvement andModernization Act of 2003, signed by President Bush just two days earlier.The speed of this regulatory action is unprecedented, and points to theimportance of eliminating the practice of Medicare beneficiaries having topay full price for prescription drugs.The historic legislation constituted the most significant additions to theprogram since it was created in 1965. While the drug discount benefit willbe available next spring, the more significant provision of the law creatingnew Medicare drug coverage available to all Medicare beneficiaries will takeeffect in 2006."We are excited that President Bush's goal of modernizing Medicare andproviding a drug benefit has finally been met," said Secretary ."We will work vigorously to create the structure for the new drug benefitthat will be available in 2006 to all beneficiaries. In the meantime,millions of older and disabled Americans will benefit from the drug discountcard that will be available next spring. These Americans have been payingfull price for their drugs for too long. The drug discount card will helpthem lower those costs until the more comprehensive Medicare drug benefitcomes into effect in two years."Seniors and individuals with disabilities will be able to use these cards togarner savings of about 10 to 15 percent on their total drug costs, withsavings of up to 25 percent or more on individual prescriptions. AllMedicare beneficiaries, except those who already have Medicaid outpatientdrug coverage, will be able to enroll in Medicare approved drug discountcard programs, with benefits beginning in June, and may continue until theMedicare prescription drug benefit is implemented in 2006.A key part of the Medicare-approved prescription drug discount card programis a subsidy of up to $600 a year for eligible low-income beneficiaries.Individuals whose income is less than $12,124 each year or married coupleswhose income is less than $16,363 may qualify for this special help. Inaddition, Medicare will cover the cost of the enrollment fee for theselow-income cardholders. The Medicare-approved prescription drug discountcard will be administered by the Centers for Medicare & Medicaid Services(CMS), the HHS agency that runs both programs.Medicare beneficiaries will have a choice of at least two Medicare-approvedcards, but be allowed to enroll in only one drug card program at a time.The cost of enrollment can be no more than $30 annually. Beneficiaries canchange cards during an open enrollment period prior to 2005 or under specialcircumstances. Beginning in 2006, all people with Medicare will have accessto a voluntary prescription drug benefit.Beneficiaries will be able to get information about how the discount drugcard program operates, who can qualify and how to join, as well as somecomparative information on card sponsors in the spring at www.medicare.govand 1-800 MEDICARE (1-800-633-4227) TTY/TDD: 1-877-486-2048.At www.medicare.gov, beneficiaries will find a price comparison Web sitethat can help them compare negotiated prices, fees, and other card programfeatures from card to card. The negotiated prices displayed will be a drug'smaximum price for an approved sponsor's service area. Actual prices mayvary, but will not be more than the posted prices. Customer servicerepresentatives at 1-800-MEDICARE will be able to help answer questionsabout the program, walk-through the price comparison Web site, log calls,and refer to appropriate sponsor or other resources (such as, makeappropriate referrals for eligibility determination or to their StatePharmacy Assistance Program)."We take the use of the Medicare name very seriously and we will approveonly reputable plans that will provide significant discounts to our nation'sseniors and individuals with disabilities," said Tom Scully, CMSAdministrator. "It not only offers opportunities for lower prices for allseniors, but also gives immediate help for low-income seniors and peoplewith disabilities, giving them $600 to pay for their prescription drugs."Medicare will contract with private companies to offer the new discountcards. Any non-governmental organization that meets all of thequalifications can receive a Medicare endorsement. Organizations will needto complete a detailed application concerning their qualifications and thedesign of their proposed drug discount card program. CMS will ask forapplications several days following the publication of the interim finalrule. This posting will be found at www.cms.hhs.gov/discountdrugs. Aseparate solicitation will be posted for certain Medicare managed carecontractors on this site, as well as on the health plans pages atwww.cms.hhs.gov/healthplans. CMS will sponsor a pre-application conferenceDecember 18-19, 2003 for all interested parties. The conference willoutline the drug discount card program's application requirements.The regulation requires drug card sponsors to pass through savings in theform of price concessions to beneficiaries and publish the prices for theprescription drugs their cards will cover. Medicare will also provide cardsponsor program information so that beneficiaries can choose the discountcard program that best meets their individual needs. It is expected thatthe Medicare-approved discount drug cards will be available through avariety of sources, including pharmaceutical benefit managers, insurers,retail pharmacies, and Medicare+Choice plans. To be Medicare approved, adrug discount card program must include an extensive retail pharmacynetwork; no mail-order only programs will be allowed. Information about theparticipation process for interested organizations is available atwww.cms.gov###

Date: December 10, 2003

For Release: Immediately

Contact: CMS Public Affairs

(202) 690-6145

Headline: HHS ANNOUNCES IMMEDIATE STEPS TO MAKE

MEDICARE-APPROVED DRUG DISCOUNT CARD PROGRAMS

AVAILABLE NEXT SPRING

HHS Secretary Tommy G. today announced an interim final regulation

for the Medicare Prescription Drug Discount Card Program, designed to help

people who are covered by Medicare with the cost of prescription drugs.

Individuals will be able to enroll in a Medicare approved prescription drug

discount program beginning in spring of 2004.

The regulation outlining the new drug discount card program is the first

action resulting from the Medicare Prescription Drug, Improvement and

Modernization Act of 2003, signed by President Bush just two days earlier.

The speed of this regulatory action is unprecedented, and points to the

importance of eliminating the practice of Medicare beneficiaries having to

pay full price for prescription drugs.

The historic legislation constituted the most significant additions to the

program since it was created in 1965. While the drug discount benefit will

be available next spring, the more significant provision of the law creating

new Medicare drug coverage available to all Medicare beneficiaries will take

effect in 2006.

" We are excited that President Bush's goal of modernizing Medicare and

providing a drug benefit has finally been met, " said Secretary .

" We will work vigorously to create the structure for the new drug benefit

that will be available in 2006 to all beneficiaries. In the meantime,

millions of older and disabled Americans will benefit from the drug discount

card that will be available next spring. These Americans have been paying

full price for their drugs for too long. The drug discount card will help

them lower those costs until the more comprehensive Medicare drug benefit

comes into effect in two years. "

Seniors and individuals with disabilities will be able to use these cards to

garner savings of about 10 to 15 percent on their total drug costs, with

savings of up to 25 percent or more on individual prescriptions. All

Medicare beneficiaries, except those who already have Medicaid outpatient

drug coverage, will be able to enroll in Medicare approved drug discount

card programs, with benefits beginning in June, and may continue until the

Medicare prescription drug benefit is implemented in 2006.

A key part of the Medicare-approved prescription drug discount card program

is a subsidy of up to $600 a year for eligible low-income beneficiaries.

Individuals whose income is less than $12,124 each year or married couples

whose income is less than $16,363 may qualify for this special help. In

addition, Medicare will cover the cost of the enrollment fee for these

low-income cardholders. The Medicare-approved prescription drug discount

card will be administered by the Centers for Medicare & Medicaid Services

(CMS), the HHS agency that runs both programs.

Medicare beneficiaries will have a choice of at least two Medicare-approved

cards, but be allowed to enroll in only one drug card program at a time.

The cost of enrollment can be no more than $30 annually. Beneficiaries can

change cards during an open enrollment period prior to 2005 or under special

circumstances. Beginning in 2006, all people with Medicare will have access

to a voluntary prescription drug benefit.

Beneficiaries will be able to get information about how the discount drug

card program operates, who can qualify and how to join, as well as some

comparative information on card sponsors in the spring at www.medicare.gov

and 1-800 MEDICARE (1-800-633-4227) TTY/TDD: 1-877-486-2048.

At www.medicare.gov, beneficiaries will find a price comparison Web site

that can help them compare negotiated prices, fees, and other card program

features from card to card. The negotiated prices displayed will be a drug's

maximum price for an approved sponsor's service area. Actual prices may

vary, but will not be more than the posted prices. Customer service

representatives at 1-800-MEDICARE will be able to help answer questions

about the program, walk-through the price comparison Web site, log calls,

and refer to appropriate sponsor or other resources (such as, make

appropriate referrals for eligibility determination or to their State

Pharmacy Assistance Program).

" We take the use of the Medicare name very seriously and we will approve

only reputable plans that will provide significant discounts to our nation's

seniors and individuals with disabilities, " said Tom Scully, CMS

Administrator. " It not only offers opportunities for lower prices for all

seniors, but also gives immediate help for low-income seniors and people

with disabilities, giving them $600 to pay for their prescription drugs. "

Medicare will contract with private companies to offer the new discount

cards. Any non-governmental organization that meets all of the

qualifications can receive a Medicare endorsement. Organizations will need

to complete a detailed application concerning their qualifications and the

design of their proposed drug discount card program. CMS will ask for

applications several days following the publication of the interim final

rule. This posting will be found at www.cms.hhs.gov/discountdrugs. A

separate solicitation will be posted for certain Medicare managed care

contractors on this site, as well as on the health plans pages at

www.cms.hhs.gov/healthplans. CMS will sponsor a pre-application conference

December 18-19, 2003 for all interested parties. The conference will

outline the drug discount card program's application requirements.

The regulation requires drug card sponsors to pass through savings in the

form of price concessions to beneficiaries and publish the prices for the

prescription drugs their cards will cover. Medicare will also provide card

sponsor program information so that beneficiaries can choose the discount

card program that best meets their individual needs. It is expected that

the Medicare-approved discount drug cards will be available through a

variety of sources, including pharmaceutical benefit managers, insurers,

retail pharmacies, and Medicare+Choice plans. To be Medicare approved, a

drug discount card program must include an extensive retail pharmacy

network; no mail-order only programs will be allowed. Information about the

participation process for interested organizations is available at

www.cms.gov

###

Note: All HHS press releases, fact sheets and other press materials are

available at http://www.hhs.gov/news.