Congressman Dennis Cardoza
18th Congressional District of California

Cardoza said that some seniors will be able to save money using this card to purchase their prescriptions. However, as with the new prescription drug benefit, big drug and insurance companies – not Medicare – are in charge of these discount cards and determine what drugs seniors save on and how much they pay.

"There’s no guarantee that this is a good deal for seniors. Cards are expected to offer discounts, but there is no requirement of a minimum discount, and there’s no guarantee that seniors will save," Cardoza said. "Drug companies have already begun increasing their prices prior to the implementation of the law so that discounts offered don’t cut into their bottom line. This is like marking up the cost of goods right before a store has a sale. In the end, seniors may actually pay more."

Currently, seniors can have multiple discount cards, which allows them to maximize their savings for each drug they take. But under the new law, seniors and people with disabilities will only be allowed to sign up for one card a year. This prohibits them from maximizing savings through multiple cards or from changing cards during the year to follow the lowest prices for their drugs.

Cardoza also cautioned that companies offering the cards can change the drugs they cover and the discounts weekly. This means that seniors who sign up for a card because it discounts the medication their doctor has prescribed will be stuck if the card suddenly changes the discount or drops the drug.

Complicating matters further, the Associated Press reported today that a government-sponsored Web site contained inaccurate information about the price of drugs covered under some cards.

Cardoza warned that with all of the flaws and pitfalls, seniors and people with disabilities who are considering signing up for this card should carefully consider their options. He encouraged those attempting to determine whether they should sign up for one of the new prescription drug cards to call 1-800-MEDICARE, visit www.medicare.gov, or contact one of his district offices for help figuring out which prescription drug discount card – if any – is right for them.