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Katherine C. Pearson, Editor, and a Member of the Law Professor Blogs Network on LexBlog.com

VA Drug Program Said Cheaper Than Medicare

September 27, 2005

It appears that the Medicare discount card program was no benefit to veterans:

WASHINGTON — People who get their drug benefits through the Veterans Affairs Department paid about $220 less for a yearlong prescription than those who used the government’s Medicare drug card, said a study released Tuesday.

Families USA, an advocacy group, said older people using the discount cards paid more than they would have paid through the VA for 49 of the 50 most frequently used drugs for senior citizens.

The discount cards have been in effect for less than 18 months. They will be replaced Jan. 1 by a comprehensive benefit that beneficiaries can obtain by enrolling with a private plan.

A spokesman for the Centers for Medicare and Medicaid Services, or CMS, said the discount cards did exactly as advertised — providing a savings of 10 to 25 percent for those who otherwise did not have drug coverage. It’s not fair to compare them to the more comprehensive benefit to come, he said.

“This is old news,” said the spokesman, Gary Karr.

He also said there will be a greater choice of drugs under the coming benefit than there is under the VA program.

Families USA opposed legislation in 2003 that brought created the coming benefit under Medicare. Ron Pollack, the organization’s executive director, said he believes the comparison between plans shows what can occur when the federal government negotiates on behalf of consumers.


Read more in Newsday/AP.

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