How Does This Card Work?

Beginning in June 2004, through December 2005, Medicare beneficiaries have access to a choice of discount cards that could help them save up to 25 percent on some of their prescription drugs. These questions and answers can help you better understand the new program.

All Medicare beneficiaries, except those who receive drug coverage from Medicaid or other drug-assistance programs.

Absolutely not. Although the cards could save you as much as 25 percent on some of the drugs you take, you do not have to get a card. But, you should look at your options to see if one of the cards could save you some money.

There is no single "Medicare" card. Many competing cards will be offered by private companies that have been approved by Medicare. You can choose only one Medicare-approved card. But you can change to another card once, at the end of 2004. If you are enrolled in a Medicare HMO that sponsors a card, you can apply only for that card.

Yes, no card can cost more than $30 a year, and some may cost less. However, Medicare is offering some financial advantages for people with low incomes. A single person with income under $12,569 or a married couple with income under $16,862, who don't have prescription drug benefits under any other program, do not have to pay for the card. And they can get $600 per year during both 2004 and 2005 to be used toward their prescription drug purchases.