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Comparing discount prescription drug plans
by Tony Novak, CPA, MBA, MT
, revised 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.
Status: outdated
The consumer concepts still apply but the specific references are outdated.
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Opinions expressed are the solely those of the author and do not represent the position of any other person, company or entity mentioned in the article. Information is from sources believed to be reliable but cannot be guaranteed. Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues or a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Tony Novak operates as an independent adviser under the trademarks "Freedom Benefits", "OnlineAdviser" and "OnlineNavigator" but is not a representative, agent, broker, producer or navigator for any securities broker dealer firm, federal or state health insurance marketplace or qualified health plan carrier. He has no financial position in any stocks mentioned. Novak does work as an accountant, agent, adviser, writer, consultant, marketer, reviewer, endorser, producer, lead generator or referrer to other companies including the companies listed in the articles on this web site.
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