Posted on 01/03/2002 1:48:52 PM PST by Native American Female Vet
Congressional auditors find drug cards for seniors offer little savings
By Laura Meckler, Associated Press, 1/3/2002 17:17
WASHINGTON (AP) Discount prescription drug cards now available to older Americans offer only meager savings, particularly in urban areas, government figures suggest.
The cards, which are marketed by private companies, charge seniors a modest fee, usually $12 to $25 per year, in exchange for discounts. But savings are minimal for many of the most popular name-brand drugs, according to data collected by the General Accounting Office.
On average, seniors in three large cities Washington, Chicago and Seattle see savings of 8.2 percent on 12 name-brand drugs bought with drug discount cards compared with buying retail. The savings were more significant close to twice as much in a rural area in Georgia the GAO examined.
The savings also were more significant for generic drugs. Drug discount programs charged an average 37 percent less than retail for generics. However, the price of generic versions are much lower to begin with, so seniors saved only a few dollars per prescription.
The cost of prescription drugs is crucial for many older people. Medicare, which provides health insurance to all Americans over age 65, does not cover prescription drugs used outside the hospital. Many seniors get at least some of their drug costs paid, in some cases by joining a Medicare HMO or by buying supplemental coverage, but about 27 percent have no drug coverage.
Last year, Democrats and Republicans, including President Bush, campaigned for office with promises to add drug coverage to Medicare. So far no plan has made it even out of a congressional committee.
Over the summer, President Bush proposed his own version of a drug discount card as a stopgap. That proposal, which has been delayed by a federal judge, is inadequate, say Democrats, who held the GAO data as proof that discount cards offer minimal savings.
''The drug card proposal will be a bitter disappointment for seniors,'' said a statement from Rep. Henry Waxman, D-Calif., one of several Democrats who requested the data from the congressional investigative agency. ''Seniors need a genuine drug benefit, not a drug card program with paltry benefits.''
The administration countered that the GAO study is proof that the Bush plan is needed. By attracting more seniors, the Bush discount cards will allow companies to negotiate much more substantial savings, said Thomas Scully, administrator of the Centers for Medicare and Medicaid Services.
''The voluntary drug cards that exist in the market for seniors don't deliver any savings,'' he said. ''Seniors are not organized at all. They're the only people in the country who pay over-the-counter prices.''
The GAO drew no conclusions about how similar or different the Bush plan would be to existing drug card programs.
A federal judge put the Bush drug card plan on hold last year, saying the administration lacked the authority to implement it. At minimum, the court ruled, the administration had to issue regulations describing the plan and solicit public comment.
The Department of Health and Human Services is expected to issue the regulations as early mid-January. HHS will then have to review comments and expects to be back in court by April.
Still, even if the plan goes forward, the administration allows that the cards are no substitute for adding drug coverage to Medicare itself and helping to pay for it an expensive and complicated task.
Congress was expected to take up the issue this fall. While many observers thought the chances of success were low, they dropped to zero after the Sept. 11 attacks commanded virtually all energy in Washington toward issues related to terrorism.
On the Net: GAO report: http://www.gao.gov and click on ''Today's Reports'' for Jan. 3
Centers for Medicare and Medicaid Services:
http://www.hcfa.gov/
http://www.thecanadiandrugstore.com/default.asp
There are others and you can save up to 30%.
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