Prescription Drug Discount Program Overview

1
Prescription Drug Discount Program Overview

• Prescription drug discount programs are
  prescription plans that offer substantial savings
  on prescription drugs.
  
• They are available to anyone who wants to take
  advantage of them.
  
• Average savings between the different programs
  are about 5 to 50 percent of the prescription
  drugs.

2
Overview Continued

• Even more help is available for those on limited
  incomes.
  
• For example, Medicare offers a 600 credit on the
  Medicare-approved drug discount card for those
  who qualify.
  
• In order to qualify, A single person cannot make
  more than 1,047 a month and 1,404 if you are
  married.

3
Problems With Drug Discount Programs

• Awareness of Drug Discount Programs for those
  with low incomes is relatively low among adults.
  
• About 65 of adults have heard of programs that
  help seniors, but only 32 are aware that there
  are programs out there that will help lower
  income families or individuals.
• The income requirement for those with low incomes
  is way too low.
  
• An annual income of a little over 12,000 is way
  too low to get extra help.
  

4
Problems Continued

• For those that may make a little bit more than
  the eligibility will find it hard to get the
  prescriptions that they may need.
  
• The savings that the company says you get might
  not actually be the savings that you will
  receive.
  
• Some cards may offer savings up to 20 30
  percent when in actuality you might only be
  saving 10 of the costs.
  

5
Problems Continued

• Most Discount Programs also require a monthly or
  annual fee that also inhibits the savings one
  would acquire.

6
Improvements to Discount Programs

• For those with low incomes, a raise in the
  eligibility requirement is needed.
  
• Any individual with an annual income under
  20,000 is need of any extra assistance for
  prescription drugs that they can get.
  
• The current requirements do not help the
  individuals with a higher end low annual income.
  
  

7
Improvements

• Some insurers are giving up discounts to save
  money.
  
• These programs would get rid of discounts to
  consumers and base the price on the drugs actual
  cost.
  
• The objective is to make more generic drugs
  available to consumers and hope that they opt for
  the generic drugs as opposed to their expensive
  counterparts.

8
Improvements

• New Medicare drug benefit will be implemented on
  January 1, 2006.
  
• It will provide Medicare beneficiaries with
  better discounts on their prescription drugs as
  well as provide comprehensive prescription drug
  coverage.