Comparing discount prescription drug plans

by Tony Novak, MBA, MT, OnlineAdviser at Freedom Benefits updated 5/9/2012

Update: We are advised to direct members with questions about the popular DCA benefit and specific drugs (including Core Health plan members) to the Member Help Line at 1-800-788-2949.

The Medicare-endorsed discount prescription drug card will be introduced next month (April 2004) and many people are asking how the plan compares to other similar plans already in the market. The Medicare-endorsed cards will be issued primarily by HMOs, whereas the commercial plans are offered by other types of health care firms. The Medicare plans are available only to qualified beneficiaries bit the commercial plans are available to anyone. Clearly low income seniors will benefit because the Medicare-endorsed card includes a $600 cash benefit. But for everyone else, the benefits are questionable and the commercial plans may actually be more valuable. The chart below summarizes three of the different types of prescription drug cards, using the most popular plans at Freedom Benefits in each category as specific examples.

	Medicare	Commercial	Free
Cost	$30/year	$90/year	$0
Eligibility	qualified Medicare beneficiaries	anyone	anyone
Savings	10% to 25%	15% to25%	5% to 20%
Online Sources	26 providers at Medicare.gov	Ehealthdiscountplan	Freedom Benefits
Advantages	Low income beneficiaries get $600 cash benefit, drug prices are published online	one card covers whole household, strong member service, 30 day free trial	fast access, print and use immediately
Disadvantages	must wait until eligible, most are issued by HMOs	not available in all states	limited user service

Please note that the Freedom Benefits supplemental prescription drug plan is not a discount plan but is a faternal benefit available to only to members who meet qualification requirements. Ask the enrollment adviser for details.

Tony Novak is a member of the Pennsylvania Institute of Certified Public Accountants, the New Jersey Society of Certified Public Accountants and an accredited member of the Better Business Bureau.

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