Medicare Prescription Drug Discount Cards Could Save Beneficiaries About 20% on Medication Costs, Study Finds

Medicare beneficiaries could save an average of 20%, or $775 over 18 months, on their medications under the new prescription drug discount card program -- a figure that appears to be "in line" with earlier estimates by federal officials, according to a study released Friday, the Minneapolis Star Tribune reports. Researchers from the Lewin Group, a health care research and analysis firm, and the Healthcare Leadership Council, which represents drug manufacturers, hospitals and related groups, analyzed savings offered by 34 cards for the 25 most-often prescribed drugs. They found that a beneficiary's average discount ranged from 11% to 24% (Wolfe, Minneapolis Star Tribune, 8/14).

Researchers based estimates on discounts available to retail purchasers who currently lack prescription drug coverage, shop at retail pharmacies and did not "assess the possibly greater discounts available to purchasers who switch to mail-order pharmacy service," according to the authors of the study (Bryant et al., "Assessment of Beneficiary Savings in the Medicare Drug Discount Card Program," 8/12).

The study found that over 18 months through 2006, when the program ends, beneficiaries' average savings would be 35.5%. According to the study, low-income beneficiaries, who are eligible for a $600 subsidy, would save 47% by 2006.

Researchers estimate that by 2006, the program could save beneficiaries $7.7 billion if the Medicare program reaches its goal of enrolling 7.3 million people. According to the study, drug discounts "have remained steady" after "modest improvements" during the first few weeks of implementing the program, the Star Tribune reports. Available discounts also vary little by region, and the largest savings often come from purchasing generic drugs, the study found, the Star Tribune reports.

HLC President Mary Grealy said, "I hope that all groups and government leaders involved in the ongoing political wars will put down their arms and start replacing rhetoric and hyperbole with facts and information and work together to help every senior citizen in this country who stands to benefit from having a Medicare drug discount card" (Minneapolis Star Tribune, 8/14). The study is available online. Note: you must have Adobe Acrobat reader to view the report.