The Use of Exclusive Drug Discount Cards in Medicare Advantage Plans

The Medicare Prescription Drug Improvement and Modernization Act (MMA) of 2003 created a temporary prescription drug discount card for most Medicare beneficiaries and a transitional assistance subsidy program to aid low-income beneficiaries in paying for pharmaceuticals until the voluntary Medicare Part D prescription drug benefit goes into effect in 2006. One part of the program authorizes exclusive cards that are offered by Medicare Advantage (MA) plans. Enrollment in these exclusive cards accounts for over half of those participating in the discount card program. This profile examines the arrangements under which these exclusive cards are offered, the firms that offer them, areas in which they are available, the way they often integrate with existing drug benefits offered by many of the MA plans, and potential lessons for the Part D benefit.