Canada Pharmacy News

13 July 2004

Baltimore Chronicle's view from the Hill:
Congressional Report Shows Medicare Drug Discount Cards Offer Little Savings

Researchers found that the drugs purchased with Medicare discount cards are significantly more expensive than the same drugs in Canada or those whose prices are negotiated by the federal government for the VA.

ODENTON, MD, JULY 12, 2004--At a Town Hall meeting at the Catherine O'Malley Senior Center in Odenton, US Rep. Benjamin L. Cardin today released a congressional report analyzing the 33 Medicare-approved prescription discount drug cards available to seniors in Maryland's Third Congressional District. The report found that the "drug cards are failing to provide significant discounts for seniors."

The researchers analyzed the top 10 drugs used by seniors and compared the average prices available through Medicare-approved discount cards with Canadian prices, Veterans Administration prices negotiated by the federal government, and retail prices. They found that, with the exception of some low-income seniors who are eligible for an annual $600 subsidy to help pay for drugs, most seniors see little benefit. They also found that the drugs purchased with Medicare discount cards are significantly more expensive than the same drugs in Canada or those whose prices are negotiated by the federal government for the VA, and that the discount drug cards were comparable to other prices currently available through retail outlets.

For example, the report showed that seniors using the Medicare-approved discount card to purchase a 30-day supply of the cholesterol-lowering drug Lipitor paid $68.48. For the same drug and quantity, the Canadian price was $49.85, the VA price was $36.48, and the retail price using Drugstore.com was $62.99. The discount drug cards can cost seniors up to $30 per year and are not accepted at all pharmacies.

"On their own, seniors have discovered that the Medicare discount drug card program is of little value to them. This Congressional report confirms what they already believe. The Medicare Drug bill that became law last year made promises to seniors that it has failed to deliver. It's time to change that bill so that seniors receive meaningful savings when they purchase medicines," said Rep. Cardin.

The Congressman has introduced the Preserving Medicare for All Act (HR 3702), which would lower prescription drug costs by allowing the US Department of Health and Human Services to use the purchasing power of 40 million Medicare beneficiaries to negotiate lower drug costs with pharmaceutical companies. It also would provide a guaranteed, universally available drug benefit option through Medicare, end discrimination against employer retiree plans, repeal the competition provisions that will threaten traditional Medicare, eliminate excess payments to private health plans, and repeal the expenditures cap that will result in harsh cuts to Medicare providers and patients.

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