The following op-ed appeared in the Dearborn Times-Herald on April 28, 2004

What You Need to Know about

 Changes to Medicare

by U.S. Rep. John D. Dingell

With just days before seniors can begin enrolling in the Medicare discount card program, I hope that all seniors, and their loved ones, read the fine print before signing up for the plan.

Personally, I am more skeptical about these cards now more than ever. We have seen reports that the drug industry is raising its prices before the Medicare endorsed discount cards are even available.  I suppose this is intended to make you believe that the cards are providing a decent discount.  An even more cynical view, held by some, is that the cards will ensure that the drug companies are still making a huge profit.

There are five flaws in the Medicare discount cards which should make all buyers beware

Ø   The cards do NOT guarantee any particular discount, despite previous claims they would offer discounts of 10 to 25 percent on the costs of drugs. But the law does not specify or require card sponsors to provide any particular discount on prescription medicines.  The card sponsor actually decides how much of the discount gets passed onto seniors and how much of the discount it keeps for profit.

Ø   There is NO guarantee buyers will continue to get a discount on the drugs they purchase after enrolling. Card sponsors can decide to drop your drug from the CARD at any time.

Ø   There is NO guarantee that advertised discounts won’t change after buyers join the card. Card sponsors can change the discount price, and must post those changes only weekly.  And as you know, once you join a card, you can’t join another until next year – even if the card sponsor switches the drugs covered or the discounts you get.

Ø   Buyers must watch which pharmacies they go to under the discount card. Different pharmacies will charge different prices at the register – even with any discount offered by the card.

Ø   There is NO guarantee that these new cards will give more savings than the other discount cards that exist today. And, for those who currently have some drug coverage – either as a retiree or perhaps through a state assistance program – that coverage still might be a better deal than these new cards. 

If you are concerned, I suggest you consult resources like the State Health Insurance Program or the Medicare Rights Center. Another organization, Families USA, will provide a prescription drug plan calculator where visitors to their website can compute the cost of their prescriptions.

At the time Congress was considering the prescription drug plan, it was reported it would cost an estimated $400 billion dollars. However, after the bill passed, other official estimates - which were apparently withheld from most Members of Congress - surfaced indicating the plan actually cost $546 billion. A Congressional committee is currently trying to determine why lawmakers did not receive information on the higher estimate in a timely manner.

Now, you may say, that doing something is better than do nothing.  Besides, I have prescription drug coverage through my employer, and I am retired.  To that I say, read the fine print.  This law could also lead a number of employers to drop existing retiree prescription drug coverage.

We will not be able to change these Medicare reforms again in the immediate future. The only way to protect yourself from the challenges that we face in the months ahead is to know the facts. Please make sure you read up on the Medicare Prescription Drug reform and find out what it means for you. Also, consider my office a resource as you try to learn the facts about Medicare’s changes.