On March 25, Health and Human Services Secretary Tommy G. Thompson announced that 28 sponsors have been approved to sign up Medicare beneficiaries for drug discount cards beginning June 1. All Medicare beneficiaries, except those who already receive outpatient drugs through Medicaid, will be able to enroll in a discount card program starting in May. The companies will compete for beneficiaries based on charges for the card and discounts the cards will provide. Medicare officials estimate the temporary drug discount program will save seniors now without coverage an estimated 10 to 15 percent on their total drug spending, with discounts of up to 25 percent or more on individual prescriptions. The card providers may charge an annual enrollment fee of up to $30 but CMS expects many companies to waive the fee.

Recognizing the potential for confusion as seniors face competing offers for cards, HHS plans an extensive outreach effort to educate beneficiaries about the new drug discount program and will offer several tools to help seniors compare cards and choose the card that provides them with the best savings. Starting April 1st, more information about the Medicare-approved drug cards will be available on www.medicare.gov or by calling 1-800 MEDICARE.

For more information, visit the Health and Human Services website located at: http://www.hhs.gov/news/press/2004pres/20040325.html