The following Op-Ed appeared in the Detroit News on Tuesday, May 4, 2004:

Michigan seniors should choose drug discount cards with care

By U.S. Rep. John Dingell

Starting yesterday, Michigan seniors have the opportunity to decide whether or not they should enter the new Medicare Prescription Drug Discount Card program. To these Michigan seniors who choose to enter the program, I have two words for you: Choose wisely.

Choose wisely, for if not, you will be stuck with a card that doesn’t get you the medicines you need or at a truly less expensive price. That’s right. Under the new Medicare law, you’ll get to choose from 27 discount cards that will be available in our market.

Once you choose your card, though, you’re then locked in for one year. You won’t be able to switch cards, you won’t be able to cancel the card you’ve chosen and you won’t be allowed to move to a card that better serves your needs. In fact, you may have fewer options than if you did not sign up.

While it may say “Medicare” on the card, the government won’t actually issue or administer the discount card program. Rather, the insurance companies will run the program. They will determine the discount you receive. They will determine the particular prescription pharmaceuticals you will receive it on. And they will determine how much money they keep for themselves in profit.

The insurance companies issue the cards, they set the prices, they set the discount, and they determine how much they will make in profit.

On top of this, the insurance companies can change the discount or the medications for which you are eligible every week. Why is this?

The simple answer is the new law fails to guarantee any minimum discount for any type of particular prescription pharmaceutical. So what you pay for on a specific prescription drug this week may not be the same price you pay for the same thing next week, next month or a year from now. And again, once you are locked into a specific card, you cannot switch to another card for one year.

As you search for the right card, you will also need to find out if your local pharmacy will accept the card you choose. The Medicare law sets basic access standards, but doesn’t require a card to contract with any and all pharmacies in the area. So you will need to do some hunting for the right card that provides the discounts you want on the drugs you need, and at the pharmacy you want to use.

If you do not make sure of this, you may find yourself in the unfortunate position of actually purchasing a card that is wrong for you, and you’ll be stuck with that card for a year.

You may have also heard of the $600 subsidy some Michigan seniors may be able to receive. Here’s the catch: To qualify, an individual’s income must be less than $12,569 a year in 2004 ($16,862 for qualifying couples).

In addition, those eligible must not receive outpatient drug coverage from other sources, including Medicaid, TRICARE, group health insurance or the Federal Employee Health Benefit Plans. You’ll have to submit a separate application to the card sponsor for this transitional assistance.

Again, make sure you choose the right card, for while you may receive the $600 subsidy, you may not have a card that is right for you.

While no one yet knows all the facts, you might feel now this card is not worth your time. The only way to protect yourself from the challenges that you face in the months ahead is to know the facts. Realize we won’t be able to change these Medicare reforms again in the immediate future.

Please make sure you read up on the Medicare Prescription Drug Discount Card plan and find out what it really means for you. Choose wisely, because if you don’t, you’ll be making a mistake that will haunt you for at least a year.