PCMA President Mark Merritt Testifies before Senate Aging Committee On Medicare Prescription Drug Discount Cards
Merritt Expects PBMs to Negotiate ‘Meaningful’ Savings for Seniors, Foresees Robust PBM Participation in New Discount Card Program
Washington, DC; 03.09.04 — Testifying today before the Senate Aging Committee on Medicare-endorsed prescription drug discount cards, PCMA President Mark Merritt predicted America’s senior and disabled beneficiaries will see “substantial”savings with a choice of competing discount cards when the program becomes operational in June 2004. The program sunsets in January 2006 when the full permanent Medicare drug benefit kicks in. The Pharmaceutical Care Management Association, or PCMA, is the national association representing America’s pharmaceutical benefit manager (PBMs).
“We expect strong and robust participation by PBMs in the new Medicare drug discount card,”PCMA President Mark Merritt told the Committee. “Because of the savings PBMs will be able to negotiate for beneficiaries, we are confident that seniors will see savings, on average, of 10 to 25 percent. For seniors choosing the mail-service pharmacy option, the savings will be even deeper.”
Data from the US General Accounting Office (GAO) and private researchers provide a preview of what seniors should expect with Medicare-endorsed drug discount cards. According to GAO, PBM-administered drug-discount cards enroll about 17 million consumers and save them hundreds of dollars per year, with average savings of 18 percent. In a report published in March 2003, researchers at Brandeis University’s Schneider Institute for Health Policy analyzed more than 3 million pharmacy claims from eight national drug discount card programs for individuals aged 65 and older. For seniors with no supplemental drug coverage Ă¢??who pay some of the highest prescription drug prices of all at the retail pharmacy counter — Brandeis found that the total average savings for all prescriptions with a PBM-administered drug discount card was 15.3 percent.
“The Medicare drug discount card represents many beneficiaries’first experience with PBMs Ă¢??and we’re optimistic they will like what they see,”added Mr. Merritt. “Seniors will have access to a broad network of pharmacies in urban, suburban and rural settings. Most importantly, because of the drug card, seniors Ă¢??including those low-income individuals eligible for $600 in transitional assistance Ă¢??will be paying less for their medicines.”
Related Links:
A copy of Mr. Merritt’s testimony
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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