AEI scholar Joseph Antos, a former assistant director for health and human resources at the Congressional Budget Office, today released a detailed comparison of available medicare prescription drug discount cards.

 

While critics have pronounced the Medicare prescription drug discount card program a failure, Antos found that the evidence proves otherwise. Prices available through Medicare-approved cards are 5 to 50 percent lower than prices offered by well-known discounters.
 
The neediest seniors stand to save even more. For them, discounts negotiated by the card sponsors are only part of the story. Low-income seniors without other drug coverage also receive a $600 taxpayer subsidy and special discounts made available by pharmaceutical manufacturers. Between June and December 2004, these beneficiaries could save between half and three-quarters of their prescription cost through this public-private partnership.
 
Initial enrollment has been disappointing despite the potentially large savings available through Medicare discount cards. That might have been expected: seniors are unfamiliar with this novel program, and a storm of bad press may have discouraged some seniors from looking into it.

 

Antos documents the need for better consumer information, particularly on special discounts offered by pharmaceutical companies that can provide very generous savings to many low-income beneficiaries. The failure to make that information transparent and easy to access must be solved if this program is to live up to its full potential.

 

A copy of the report is available.
 
Joseph Antos can be reached for interviews at 202.862.5938 (asst: 202.862.7183) or jantos@aei.org
 
For more information, please contact Veronique Rodman at vrodman@aei.org or (202.862.4871).