The average 11th District senior will save $1,488 off their prescription drug costs over 18 months by participating in the Medicare-approved drug discount card program, according to a new study. That represents a 42 percent saving off that typical Georgia senior's entire drug costs.
“The new prescription drug benefit hasn’t even been fully phased in and it’s already paying off for west Georgia’s seniors,” U.S. Rep. Phil Gingrey said. “When you also factor in that our neediest seniors are receiving $600 toward their drug costs, it’s easy to see Medicare recipients are finally getting the relief they need from the high costs of prescription drugs.
“I’ve spent much of this year traveling to every county in the 11th District educating seniors on the benefits of the drug card and how to sign up for it. We still have a long way to go, but we’ve got to keep pushing ahead. I think as seniors hear more and more about how this benefit is working and cutting their costs, it’s going to light a fire under more people to take the initiative and call 1-800-MEDICARE to find out which card works best for them.”
Statewide, with estimates showing that roughly 159,000 Georgia residents, primarily seniors and people with disabilities, will sign up for the card, the estimated prescription drug savings Georgia residents will receive reaches $186 million.
The study, an August 2004 analysis, "Assessment of Beneficiary Savings in the Medicare Drug Discount Card Program," was sponsored by the Healthcare Leadership Council (www.hlc.org). The study analyzed the savings available to seniors who sign up for the drug discount card, comparing the discount card prices (which are posted publicly on the Medicare.gov website) with average statewide retail prices for the 150 drugs most commonly prescribed to seniors.
On a national level, the report finds that the typical American senior without drug benefits pays $3,515 a year for prescription drugs. However, using the drug discount card means $1,247 in savings - or about 36 percent savings off the average senior's bill.
For millions of low-income Americans, savings are even higher. The discount card program includes a $600 annual benefit in both 2004 and 2005 for these seniors, who represent nearly a quarter of the more than four million cardholders. According to the study, low-income seniors who qualify will save an average of $1,548 on their prescription drug bill.
The study also looked at how the drug savings card would impact individuals suffering from a variety of specific diseases. It found that an average senior suffering from arthritis, osteoporosis, and allergies could save about $500 annually with the discount card. Diabetes patients could save $480. In both cases, those figures would rise substantially if the senior had qualified for the $600 low-income benefit.
Finally, the study analyzed cost savings on brand-name vs. generic drugs. Seniors using the card to purchase brand name drugs would save approximately 19 percent or $12.98 on each prescription. Savings on generic drugs were even higher with the card - averaging a remarkable 68 percent.
With Medicare reporting that the average sign-up call to now 1-800-MEDICARE lasts only about 11 minutes, early enrollment barriers are beginning to come down. Seniors in need in the 11th District should investigate the Medicare discount cards to see if one is right for them.
