Grassley analysis of drug-card savings draws questions

By Cindy Hadish
The Gazette
Sunday, June 13, 2004, 11:56:08 AM



Sen. Chuck Grassley, R-Iowa, is calling for an end to politicizing Medicare-approved drug cards, but statements he made about discounts the cards provide are being called into question.

"The drug discount card program has been the target of a deliberate campaign to discredit it and confuse seniors about how it works," Grassley said in a statement last week. "This effort is driven and coordinated by those who opposed the Medicare Modernization Act not because of policy, but because of politics."

Art Small, the Democratic candidate running against Grassley, said the confusion surrounding the discount cards is due to the fact that the program is confusing, not because of political posturing.

"Seniors' suspicions about the Medicare drug card program are prudent and well-justified," Small said. "Sen. Grassley and the other Republican leaders have packaged and sold this program with a cynical dishonesty."

Grassley said the cards offer an important first step in filling a void with immediate, significant relief for millions of Medicare beneficiaries -- seniors and the disabled -- suffering under high prescription drug costs.

Grassley cited a hypothetical Waterloo beneficiary with a $12,000 annual income who takes Celebrex, Norvasc and Zocor, who would pay about $7,000 at her pharmacy from now until the end of 2005 without a drug discount card.

The hypothetical person could save more than $1,300, or 20 percent, by using a Medicare card, Grassley said, and qualifies for a $600 transitional assistance credit this year and next year, so she wouldn't pay a card enrollment fee.

In addition, she will receive additional assistance from drug manufacturers of $5,100 when she signs up for a drug card, he said.

Grassley determined the woman would save $6,300, or 90 percent, off her prescription drugs by using the card.

Hannah Lehman, Medicare Education Project Organizer for Iowa Citizen Action Network's Education Foundation in Iowa City, said the analysis is confusing.

People who read the information about the 90 percent savings would think those savings are typical, or even expected, she said, adding "this is not the case."

Grassley's use of the $600 credit to inflate the original discount card savings of 20 percent is not an accurate representation of the program, Lehman said, adding additional manufacturer discounts have not been guaranteed.

Lehman said pharmaceutical manufacturers and drug card sponsors have claimed they will provide deeper discounts for low-income beneficiaries who use up the $600 credit, but it remains to be seen whether it will actually be available and how much savings they would provide.

Grassley representatives said he was only demonstrating that Medicare beneficiaries would not have to shop around for drug company discounts -- that those have been simplified and available under one card for those low-income beneficiaries.




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