STATEMENT OF CMS ADMINISTRATOR TOM SCULLY
CALLING FOR APPLICATIONS FOR THE MEDICARE-ENDORSED DRUG CARD ASSISTANCE INITIATIVE
The Centers for Medicare & Medicaid Services today called on companies and organizations to apply to begin offering counseling and assistance to Medicare beneficiaries to understand and obtain discounts on prescription drugs as part of the Medicare-Endorsed Prescription Drug Card Assistance Initiative.
Applications are requested from interested parties by March 7, 2003 and we expect to announce approved card sponsors in early May so that Medicare beneficiaries may begin to enroll in a Medicare-endorsed card program as early as September 2003. As parties opposed to the initiative are currently challenging the initiative in federal district court, CMS will not issue any endorsements until those district court proceedings are resolved.
On September 4, 2002 we published our final regulation to implement the education and endorsement initiative. The solicitation notice we issued today further explains the requirements that card sponsors must meet – including securing rebates or discounts from drug manufacturers on brand name and/or generic drugs - in order to obtain a Medicare endorsement.
Medicare beneficiaries enrolled in an endorsed drug card assistance program should expect to see significant savings in the cost of their prescription drugs or expanded pharmacy counseling services. Card sponsors must conduct outreach to seniors about how to lower their drug costs and improve the quality of their pharmacy services. A comparison website will be available for beneficiaries and their caregivers, and will include drugs and prices for all the endorsed card programs as well as education about generic drugs and provide information on generic alternatives.
The solicitation for applications for prospective card sponsors can be found at www.cms.hhs.gov. All prospective applicants and other interested parties are invited to attend a pre-application conference on Thursday, January 16 from 9 am to 1pm at our offices at 7500 Security Boulevard in Baltimore, Maryland. Accommodations will be provided for the handicapped or hearing-impaired. Pre-registration by 12 noon January 13 at this same website is recommended to avoid security delays. Questions for discussion at the conference should be submitted by 12 noon January 13 by email to snelson2@cms.hhs.gov