Washington – People who get their drug benefits through the Department of Veterans Affairs paid about $220 less for a yearlong prescription than those who used the government’s Medicare drug card, said a study released Tuesday.
Families USA, an advocacy group, said older people using the discount cards paid more than they would have paid through the VA for 49 of the 50 most frequently used drugs for senior citizens.
The discount cards have been in effect for less than 18 months.
They will be replaced Jan. 1 by a comprehensive benefit that beneficiaries can obtain by enrolling with a private plan.
A spokesman for the Centers for Medicare and Medicaid Services, or CMS, said the discount cards did exactly as advertised – providing a savings of 10 to 25 percent for those who otherwise did not have drug coverage. It’s not fair to compare them with the more comprehensive benefit to come, he said.
He also said there will be a greater choice of drugs under the coming benefit than there is under the VA program.
Families USA opposed legislation in 2003 that created the coming benefit under Medicare. Ron Pollack, the organization’s executive director, said he believes the comparison between plans shows what can occur when the federal government negotiates on behalf of consumers.
The private plans can’t bring about the kind of leverage that the federal government could bring by negotiating on behalf of 41 million beneficiaries, he said.
“I don’t believe there’s any serious likelihood the private plans will come close to matching the prices that the VA has achieved,” Pollack said.
The average premium for the coming benefit will be $32 a month.
