Study on Medicare Drug Discount Cards

Study on Medicare Drug Discount Cards
September 29, 2004

Dear Editor:

Since June, Medicare has provided seniors and people with disabilities the opportunity to purchase Drug Discount Cards. The effectiveness of this drug discount program here in the 4th Congressional District was recently studied by the U.S. House Committee on Government Reform. The study assessed the success of the cards at providing relief from the high prices of prescription drugs.

Focusing on the ten most commonly used prescriptions by seniors locally, the results confirm that with the new discounts, prices are on average nearly 60 percent higher than the Veterans' Administration pays for the exact same drugs. The remarkable difference in cost between these two federal programs is because the VA can negotiate for best price with drug companies while Medicare is prohibited.

When compared to Canada, prices with the discount cards are still 57 percent higher, yet the new Medicare law prohibits re-importing prescription drugs from Canada.

Minnesota's seniors need a Medicare benefit that will provide relief from the high cost of prescription drugs. I encourage seniors and all Medicare beneficiaries to read this report and provide me with your feedback and your suggestions on how to improve Medicare.

"Medicare Drug Cards Provide Few Discounts" is available by calling my St. Paul office at (651) 224-9191 or visit my website at www.mccollum.house.gov.


Sincerely,

Congresswoman Betty McCollum
Serving Minnesota's Fourth District