Want Some Cheap Drugs?

Then she heard about the Pfizer for Living Share Card. Under the drug maker's program for lower-income seniors, she now pays just $15 for her cholesterol-lowering pills. "My problem is, I waited too long [to sign up]," Windham says.

Windham isn't alone. Some 38% of Medicare beneficiaries lack any kind of drug coverage, according to the Kaiser Family Foundation, a nonprofit healthcare-policy organization. (Others receive drug benefits through their former employers or by purchasing coverage through a Medigap or Medicare + Choice Plan.) In some states, seniors with no prescription drug plan may receive state-funded financial assistance. But in most cases, they're stuck paying top dollar for their medications.

Fortunately, it doesn't have to be that way. Drug discount programs offering meaningful savings are available, says Tricia Neuman, a Medicare expert for the Kaiser Family Foundation. While many of them can't compete with the discounts offered by employer-sponsored health insurance plans, seniors can still shave hundreds of dollars a year off retail prices. According to a recent study by Brandeis University, current drug discount cards offer seniors an average of 26% off generics and 14% off name-brand medications. This rivals the savings suggested under the Bush Medicare proposal for seniors who wish to stay in the traditional fee-for-service Medicare plan. And unlike the Bush plan, drug cards are available right now.

Finding the best card to maximize your savings requires some research. Eligibility requirements, discounts and enrollment fees can vary greatly. For lower-income seniors, the drug manufacturers themselves offer discount cards with substantial savings. Third-party vendors offer cards to anyone — for a fee. Here's a breakdown to help you find the best card for you.

Drug Makers
Most of the major drug makers offer fairly significant discounts to lower-income seniors without drug coverage. Pfizer and Eli Lilly, for example, charge eligible seniors a minimal copayment of $15 and $12, respectively, for a 30-day supply of their popular medications, including Lipitor, diabetes medication Glucotrol XL, osteoporosis treatment Evista and antidepressant Prozac. That's quite a savings compared with the average of $69.70 Americans paid for a month's supply of branded medication in 2001, according to the General Accounting Office. The Together RX card (which represents GlaxoSmith-Kline, Novartis, Abbott Laboratories, AstraZeneca, Aventis, Bristol-Myers Squibb, Janssen and Ortho-McNeil) provides discounts of up to 40% off retail prices on their medications.

Unfortunately, not everyone will qualify for these cards, although the requirements are significantly less stringent than qualifying for Medicaid. While Medicaid has a strict set of income and asset guidelines for eligibility, the drug companies tend to look only at annual income. Not factored in: dollars held in untapped retirement accounts, or the principal in taxable savings accounts.

Of the group, Pfizer and Eli Lilly are the strictest, requiring annual income levels (for individuals) of no greater than $18,000. GlaxoSmith-Kline allows as much as $30,000. According to the Congressional Research Service, about 50% of the elderly have annual incomes below $18,000.

To sign up for one (or more) of these free programs, just call the company that produces your medication or log onto their Web site and request an application. Assuming you're approved, you should receive a card in the mail in a couple of weeks. Then simply present the card to your local pharmacist and receive your discount on the spot.

Third-Party Cards
Third-party providers offer drug discount cards for any senior without coverage, regardless of income. (See our chart for some of the more popular programs.) These programs are usually run by pharmacy benefit managers and membership organizations (such as the AARP), which use their collective buying power to receive rebates from the drug makers. Unlike the drug manufacturer discount cards, these cards may come with some fees. But for those requiring regular medications, the savings can still be substantial.

"We go out and talk to the manufacturers that make the drugs that seniors are taking," says Scott Hughes, a partner with MemberHealth, a drug discount card provider based in Cleveland. "They make them available for preferred placement on our formulary. Then we share a significant part of that rebate with our members." According to MemberHealth, which markets its card under the name MHRx.com, seniors saved an average of 24% on a mix of branded and generic medications in the first quarter of 2003.

The savings that different providers pass along will vary. You can check the prices for medications on most of the providers' Web sites, or by calling their customer service departments.

Just keep in mind that the third-party providers are not in the charity business, and some are better deals than others. Don't be surprised if you are asked to pay an enrollment fee, a membership fee and sometimes even a dispensing fee. While it may be tempting simply to go with the cheapest program, some of the cards that charge more also offer discounts on other services, like vision, hearing and dental work.

Consumer Tips
Before you look into discount cards, call your state pharmacy assistance program to see if you qualify for state benefits. These programs are often more comprehensive and generous than the discount cards, says an AARP spokesman. Granted, most states have strict income limits, but there are some exceptions. If you live in Florida or California, for example, all Medicare beneficiaries qualify. For a listing of contact information on state pharmacy assistance programs, visit the AARP's Web site.

If you don't qualify for a state program, be prepared to search around a bit. Start by making a list of all the medications you take and how much you pay for them at your local pharmacy. Compare these prices with the discounts offered by various programs. In some cases, it may make sense for seniors to carry a few cards, especially if they qualify for some of the drug-company programs.

Also make sure your local pharmacy accepts the discount card or cards you wish to use. If not, find out if there is another pharmacy in your area that you could visit instead. Some of the larger chains, such as CVS and Kmart, are also starting to market their own discount cards. The only catch is that the card can be used only at the issuing retail chain. You should also check out the wholesale retailers like Costco. While they don't offer seniors special discounts, the Kaiser Family Foundation's Neuman says the stores' prices can often match the discount cards' savings.

Look for sales, too. Drug prices vary, sometimes, even day to day, warns Mike DeAngelis, a spokesman with CVS. So if you have acquired a couple of different discount cards, don't be afraid to ask your pharmacist which one will provide you with the biggest savings.