PCMA: New Government Data Suggests Seniors Will Save Hundreds Of Dollars Per Year Through Medicare Prescription Drug Discount Cards
Merritt: Data Confirms Recent PCMA Survey Showing Seniors To See Meaningful Discounts through Drug Card Program
Washington, DC; 05.06.04 — New government data suggests that seniors and disabled Medicare beneficiaries will save hundreds of dollars per year on the cost of their prescription drugs with new Medicare-sponsored prescription drug discount cards, the Pharmaceutical Care Management Association said today. PCMA is the national association representing pharmaceutical benefit managers (PBMs).
“These new government data should be a reality check for critics and demonstrate that Medicare drug discount cards will provide seniors with meaningful help on the cost of their prescription drugs,” said PCMA President Mark Merritt. “PBMs save consumers money in the private sector and we are proud to bring those same benefits to Medicare beneficiaries.”
A majority of Medicare-approved drug discount cards will be sponsored and/or administered by PBMs. These data confirm a recent PCMA survey of PBMs finding that seniors enrolling in a Medicare-sponsored PBM drug card would see average savings of 17 percent for brand-name drugs and 35 percent for generics.
The Centers for Medicare & Medicaid Services (CMS) conducted the analysis and notes that “our results mean Medicare beneficiaries without prescription drug coverage will no longer have to pay the highest retail prices for their prescription drugs.” CMS notes that Medicare beneficiaries enrolling in Medicare-approved drug discount card programs should expect deeper discounts than what many consumers with third-party drug coverage enjoy. The CMS analysis specifically notes the following:
For brand-name drugs, card sponsors are negotiating discounts for beneficiaries in the range of 10-17 percent below the average retail pharmacy price paid by consumers (including non-seniors with third-party drug coverage);
For generic drugs, card sponsors are negotiating discounts for beneficiaries in the range of 30-60 percent below the average price paid by consumers;
Mail-service pharmacies are providing 10-13 percent discounts below those offered by Internet pharmacies;
Medicare-approved drug discount cards offer a lower enrollment fee Ă¢?? in some cases, no fee at all Ă¢?? than Internet pharmacies; and
In just one month, beneficiaries will see savings that exceed the maximum allowable $30 dollar annual enrollment fee, although many card sponsors are charging far less or no enrollment fee.
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The Pharmaceutical Care Management Association (PCMA) is the national trade association representing America’s pharmaceutical benefit managers (PBMs). PCMA member companies provide pharmaceutical care management services to more than 200 million Americans.
Contact Information:
Phil Blando
202-207-3614