Elderly question prescription benefits plan at AARP seminar

Some in a crowd of senior citizens came away with more questions than answers at a seminar in Cape Girardeau Tuesday attempting to explain the changing Medicare prescription benefits program and discount drug cards.

The seminar speaker, Diane Hall, associate state director for the AARP senior citizens organization, told the crowd of about 60 people at Southeast Missouri Hospital that they might want to research the matter on the Internet sites of AARP or Medicare.

But Norma Wessell of Jackson said that won't do her much good.

"I am an old woman without a computer," she said.

Hall said there are two different Medicare prescription drug programs, both of which are voluntary. The first is a drug discount card program that takes effect in June and runs through Dec. 31, 2005.

Discount cards, approved by the government's Medicare program, could save an elderly person about 10 percent to 17 percent on prescription drug costs. The cards, costing about $30 annually, will be offered through private companies.

Hall said there are at least 28 different discount cards being offered. Medicare recipients have to do some comparison shopping to see what would be best for them.

"Some cards only can be used at certain pharmacies," Hall said.

Wessell said she's already enrolled in the state of Missouri's prescription drug discount program. As a result, one medication she takes costs $15 a month rather than $140 a month.

Even with her current discount -- Wessell takes several prescription medicines -- she estimated she spends $1,300 a year on prescription drugs.

Still, she doubts she would save any more by signing up for a Medicare discount card.

"I don't think I am going to do it," she said.

The discount cards are only a temporary measure, Hall said, and Medicare recipients don't have to participate in the program.

The next program

Once the discount card program ends, Medicare plans to offer a new prescription drug benefit program. The prescription drug program is aiming to offer more comprehensive coverage than the discount cards.

Those in Medicare will be able to start enrolling in the new program Nov. 15, 2005. The program is voluntary, but there could be a penalty for those who sign up after May 15, 2006, Hall said. All of the plans will be run by private companies.

Initially the monthly premium would be about $35 a month or $420 a year. Some plans will charge more, others will charge less, Hall said.

There will be a $250 deductible. After the deductible, Medicare will cover 75 percent of prescription drug costs or a maximum of $1,500. The individual will cover the other 25 percent.

Hall said there is a "coverage gap." After total drug costs reach $2,250, a Medicare recipient would pay an additional $2,850 in out-of-pocket drug costs before the Medicare drug plan benefits would resume.

Where drug costs total over $5,100 in a year, Medicare would pay 95 percent of costs above that level.

George Davis of Cape Girardeau said he has an existing drug discount card that isn't part of the Medicare program. He isn't looking to sign up for the Medicare discount card program. But he said he probably will sign up for the Medicare prescription program that takes effect in 2006.

The coverage gap worries people like Miki Gudermuth, director of the SEMO Alliance for Disability Independence, an organization that helps the handicapped including some who are elderly.

Gudermuth said many elderly could be stuck with high prescription bills because of the benefits gap.

mbliss@semissourian.com

335-6611, extension 123