15 May 2004
Medicare drug card study shows confusion over best prices.
Some California Medicare recipients could get a better deal on prescription drugs using existing sources instead of the new discount-drug card offered as part of the new federal Medicare law, according to a study released Friday.
The study, conducted by the Oakland-based Medicine for People in Need, also indicated it may be difficult for patients to make informed decisions about how to get the better value depending on what drugs they take.
In their look at nine different sources of 20 prescription drugs, including three of the new Medicare discount drug cards, the group found that no one source emerged as the clear choice for the best deal.
"We were disappointed to discover how difficult it is now for a California Medicare patient to make an informed decision about purchasing," said Kathryn Duke, program director for the division of the nonprofit Public Health Institute. "We don't feel that information on the Medicare Web site is as stable or perhaps as accurate as it should be."
But Mark McClellan, administrator of the Centers for Medicare & Medicaid Services, called the study "incomplete" and said it does not present an accurate picture of savings available through the cards.
"The best place for seniors to go is to call Medicare," McClellan said. "We will help them sort though the information to get the biggest discounts."
Duke's group called on Medicare to postpone the start of the program until better information becomes available.
"I think it's credible what they are trying to do, but from a consumer standpoint I am wondering if this information is ready for prime time," Duke said.
The discount drug cards are the first element of last year's Medicare overhaul that narrowly won approval in the Republican-controlled Congress. Participants can begin using them June 1. They'll be good until 2006, when a different program takes over.
The study compared the prices of 10 generic and 10 brand name drugs commonly used by Medicare beneficiaries.
It looked at two online U.S. pharmacies, two Canadian pharmacies, three different Medicare-approved discount drug cards, and a state and federal discount program.
The Medicare figures were based on prices listed on Medicare's Web site May 5-11.
During that time, the study found, the availability of information on specific drugs changed significantly -- including the price of some drugs.It found that information on some generic drugs was difficult to obtain.
Beneficiaries who use generic drugs -- and who don't want to do extensive Internet research -- may be better off sticking with California's Medicare Discount Drug program, which allows them to receive discounted drugs at pharmacies, where the price is less likely to fluctuate, Duke said.
However, for Medicare beneficiaries eligible for the $600-a-year credit that comes along with the drug card, the card is probably the best deal, according to the report. And those who use brand name drugs may find better savings with the drug cards, Duke said.
The drug card prices can change as often as once a week, but beneficiaries can switch card programs only once. That's a problem, said Bonnie Burns of California Health Advocates, a group that provides health care information to Medicare beneficiaries.
"It would only be an act of fairness to allow people to have the same flexibility that companies have," Burns said.
McClellan said having stable pools of customers will make it easier for the companies to negotiate better prices.
"Because of the set up of the system beneficiaries can get more savings," McClellan said. "Prices do change. This week they went down." On the Net: read the study: www.medpin.org
ANNA OBERTHUR, Associated Press Writer
Friday, May 14, 2004
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