These discount cards will be available in 2004 to help you save on prescription drugs. Medicare will contract with private companies to offer new drug discount cards, until a Medicare prescription drug benefit starts in 2006. Companies who sponsor a discount card and meet Medicare’s standards will have a “Medicare-approved” seal on their discount card.

I have Medicare and a Medigap policy.  Can I get a Medicare-approved prescription drug discount card, and how will it affect my Medigap?

Yes, you can choose to enroll in a Medicare-approved prescription drug discount card even if you have a Medigap policy. You can keep both the discount card and your Medigap policy. The discounts and Medigap coverage will work together, and your Medigap coverage won’t be affected.

Who can get a Medicare-approved prescription drug discount card?

Almost everyone with Medicare can choose to join. It doesn’t matter whether you have Original Medicare (Part A and/or Part B), a Medigap policy, a Medicare managed care plan, or another kind of Medicare health plan. The only people who can’t enroll in a Medicare-approved prescription drug discount card are those who have outpatient drug coverage through Medicaid.

I am in a Medicare managed care plan.  Can I get a Medicare-approved prescription drug discount card?

Yes.  Your Medicare managed care plan may offer a prescription drug discount card.  If so, you will get your discount card through your plan.  In addition, if you qualify for the $600 credit to help pay for your prescription drugs, you will receive this credit through your Medicare managed care plan. 

If your Medicare managed care plan doesn’t offer a discount card, you can choose any Medicare-approved discount card offered in your area.

Does the cost go up if I enroll in a Medicare-approved prescription drug discount card after May 2004? 

No. Some companies may not be ready to start enrolling as early as May.  There is an annual enrollment fee of no more than $30. No matter when you join, the enrollment fee is the same.  There is no penalty or extra charge for joining at a later date. You can choose to join any time until December 31, 2005, when this program ends.  Medicare’s new comprehensive prescription drug benefit begins January 1, 2006.

Source: Medicare.gov