Drug Discount Cards: 2005

WebMD Medical Reference

What is it?

Until the end of 2005, anyone enrolled in Medicare can apply for an interim drug discount card.

  • The discount card is intended to save you 10% to 25% on prescription drugs.
  • Not all drugs will be covered, and savings on each drug will vary.
  • Where you can use the card will vary. They will be valid only at certain pharmacies. Some will be limited to one or more states. Others will be valid nationwide.
  • The discount card program is temporary. It will help you cover prescription costs until the new Medicare prescription drug program starts in January 2006.

Low-Income Credit

If you are not receiving Medicaid, you may qualify for a yearly credit on the card to help pay for prescriptions. Single people who make $12,919 a year or less, and married couples with an annual income of $17,320 or less are eligible.

If you applied by March 2005, you received the full $600 credit. After that month, the later you apply, the smaller the credit. People who applied between April 1 and June 30 received a $450 credit; those who apply between July 1 and September 30 will get a $300 credit; people who apply between October 1 and December 31 will get a $150 credit.

  • If you meet this condition, your enrollment fee is also waived.
  • The cost of the prescription, minus your co-payment, is applied to the credit.
Co-Insurance
2005 Income Co-Insurance
Less than $9,570 (single) or $12,830 or (married) 5%
Up to $12,920 (single) or $17,321 (married) 10%
  • You can use this credit either until May 15, 2006 or until you sign up for a Medicare Prescription Drug Plan, whichever comes first.. After this point, any remaining credit you have expires.