New Medicare Act Provides Prescription Drug Benefits to Qualifying Seniors.
The United States Department of Health and Human Services (HHS) Secretary Tommy G. Thompson has announced interim final regulations for the new Medicare Prescription Drug Discount Card Program. Enrollment will begin in the spring of 2004 and discount cards are expected to be available in June 2004. The drug benefits that will be available to Medicare participants in the spring are the first provisions of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 that was signed into law by President Bush on Dec 8, 2003. This program is a temporary measure to help the elderly and disabled until the full program is in place on 2006.
Medicare will contract with private companies to offer the new discount cards. The cost of enrollment cannot be more than $30 annually. The cards are expected to result in a savings of 10 to 15 percent of an enrolled individual’s total drug costs. Cards offered by different organizations will have different terms and benefits so enrollees will need to determine which of the available discount drug cards is best for that person, depending on that person’s drug needs.
Enrollment will not be available to Medicare enrolled individuals who are receiving prescription assistance from a state Medicaid program. To enroll, a person may not have any other prescription drug coverage. Many people may determine that their current drug program is a better choice than the new drug discount card program. Comparing the programs and deciding on the best one for a particular individual may be difficult and confusing.
The Federal government intends to insure that there are at least two drug discount card programs in a state for potential enrollees to choose between and intends to have information available to help people in comparing the various options. Medicare participants can use only one discount card at a time. Once a discount card program is selected, a person will be locked into that choice. One change of discount care program will be allowed during between November 15 and December 31, 2004. Card programs may be changed if an enrollee moves out of a service area or under other limited circumstances.
Discount cards will be free for individuals with annual income below $12,123 and for couples with annual income below $16,362. Persons with incomes below these amounts can receive $600 to cover drug costs if enrolled in the program.
For additional detail on the new law and the new discount drug card program go to the Federal government website http://www.access.gpo.gov/su_docs/fedreg/a031215c.html or to read the Federal news release about the program on the web go to http://www.hhs.gov/news/press/2003pres/20031210a.html
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Attorneys Judith Sterling and Michelle Tucker are both CPAs and licensed attorneys. They are the first two attorneys in Hawaii to be certified by the American Bar Association (ABA) accredited Estate Law Specialist Board, Inc., as Estate Planning Law Specialists, and are so certified by the Supreme Court of Hawaii. The Supreme Court of Hawaii grants Hawaii certification only to lawyers in good standing who have successfully completed a specialty program accredited by the ABA.
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