Medicare lets 28 firms offer Rx cards

WASHINGTON — Prescription drug discount cards offered by 28 companies have won the seal of approval from Medicare, the government said Thursday.

Those using the cards can expect drug discounts between 10 percent and 25 percent, said Tommy Thompson, the health and human services secretary. The cards offer help paying for medication while the government readies a Medicare prescription drug benefit, which is scheduled to start in 2006.

Thompson predicted competition among companies offering cards, combined with the public display of their drug prices, will make drugs cheaper for everyone.

"It's going to have a tremendous tendency to lower drug prices," he said.

Medicare beneficiaries can start examining the details of different prescription drug cards beginning in late April. A Web site will allow people to compare enrollment fees and drug prices across cards.

Beneficiaries also can get help choosing a drug card by calling 1-800-Medicare. A Medicare representative can mail the results of a drug card comparison to those asking for help.

"It's not yet time to sign up for a card, but it is time to start thinking about your options," said Mark McClellan, Medicare's incoming administrator.

Older people and disabled Medicare beneficiaries can enroll in a discount card in May and start using the card to buy discounted drugs on June 1. To educate people about their drug-card choices, the government is planning to continue its advertising program, mail a short publication to every Medicare recipient and work with state health insurance assistance programs.

To educate people about their drug card choices, the government plans to continue an advertising campaign, mail a short publication to every Medicare recipient and work with state health insurance assistance programs.

Some low-income people may receive a letter from the Social Security Administration alerting them to a $600 credit available annually toward the purchase of prescription drugs. Older people with income less than $12,569 and couples with income less than $16,862 may qualify for assistance.

They sign up for the drug discount cards with a private provider, not Medicare. Card providers can charge an annual enrollment fee up to $30, and the fee may vary by state. Officials said they expect one-quarter of card providers to enroll older people without charge. The fee is waived for those who qualify for low-income assistance.