News Release

FOR IMMEDIATE RELEASE
Monday, Nov. 24, 2003

Contact: HHS Press Office
(202) 690-6343

Savings for Seniors Under The Medicare Prescription Drug Benefit

On average, seniors would save about half on their prescription drug spending.

Under the bipartisan agreement, seniors now paying the full retail price for prescription drugs will be able to cut their drug costs roughly in half in exchange for a monthly premium of about $35. In many cases, they'll save a total of more than 50% on what they pay for prescriptions:

Seniors Paying Full Retail Prices with Monthly Rx Bills of�

Will Have Annual Rx Savings of�

Reducing Their Annual Rx Spending by�

$100

$773

64%

$200

$1,733

72%

$300

$2,220

62%

$400

$2,460

51%

$500

$2,700

45%

$600

$3,567

50%

$700

$4,719

56%

$800

$5,871

61%

Note: assumes 20 percent cost management savings.

Savings on the Medicines Seniors Need
Seniors who choose to enroll in a prescription drug plan will have 75 percent of the cost of their drugs covered (after meeting a $250 deductible), and be responsible for 25 percent coinsurance, up to $2,250 in total spending. Once an enrollee's out-of pocket spending reached $3,600 in any year, the plan would pay for 95 percent of each prescription, and the enrollee would be responsible for 5 percent or a small co-payment. The chart below shows how the discounts and subsidies could apply to some of the drugs seniors use most.

Comparison of Possible Cost-Sharing for Drugs Seniors Use under the Bipartisan Agreement Selected Popular Drugs for Seniors Plan for Medicare under the Bipartisan Agreement
Drug Name	W2002 Retail Price for 30 Tablets *	Discounted Price **	Beneficiary's 25 Percent Coinsurance***	Beneficiary's 5 Percent Coinsurance****
Lopressor 100mg	45.99	36.79	9.20	1.84
Imdur 30mg	48.89	39.11	9.78	1.96
Lipitor 20mg	108.65	86.92	21.73	4.35
Proscor 5mg	82.59	66.07	16.52	3.30
Celebrex 200mg	86.28	69.02	17.26	3.45
Zyrtec 10mg	69.52	55.62	13.91	2.78
Vanceril 42mcg	51.05	40.84	10.21	2.04
Norvasc 5mg	34.94	27.95	6.99	1.40
Fosamax 70 mg, 4 pills	80.45	64.36	16.09	3.22
Zoloft 100mg	78.96	63.17	15.79	3.16
NOTES: * Price data from "Shopping Smart for Prescription Drugs: A Guide to Discounts on Medication." Chicago Department of Public Health, Office of Managed Care. Prices are taken from telephone inquiries to a large chain pharmacy in September 2002. Future prices may be different. Calculations assume a 20 percent cost management savings. Actual discounts will vary from drug to drug and plan to plan. The Medicare bipartisan agreement provides coverage for 75 percent of enrollees' prescription expenses after a $250 deductible is met, up to $2,250 of total annual spending. Most beneficiaries incur less than $2,250 annually. ***The Medicare bipartisan agreement provides coverage for at least 95 percent of an enrollee's prescription expenses after their out-of-pocket expenses reach $3,600 annually.

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Last Revised: December 11, 2003