Medicare Part D

(Information from Center for Medicare Advocacy, Inc.)

Medicare did not cover outpatient prescription drugs until January 1, 2006, when it implemented the Medicare Part D prescription drug benefit, authorized by Congress under the "Medicare Prescription Drug, Improvement, and Modernization Act of 2003." This Act is generally known as the "MMA."

The Part D drug benefit (also known as "Medicare Rx") helps Medicare beneficiaries to pay for outpatient prescription drugs purchased at retail, mail order, home infusion and long-term care pharmacies.

Unlike Parts A and B, which are administered by Medicare itself, Part D is "privatized." That is, Medicare contracts with private companies that are authorized to sell Part D insurance coverage. These companies are both regulated and subsidized by Medicare, pursuant to one-year, annually renewable contracts. In order to have Part D coverage, beneficiaries must purchase a policy (i.e., enroll in a plan) offered by one of these companies.

To learn more about Medicare Part D click here to visit the Center for Medicare Advocacy, Inc. site

About Generic Drugs

Generic drugs have become a vital tool for consumers to save money on their prescription medications. Generic drugs use the same active ingredient as brand-name drugs and are approved by the FDA. Generic drugs are as safe as the brand-name equivalent, yet much less expensive (often only 20-30% of the brand-name price). Sixty-five percent of prescriptions in the US in 2007 were filled with generics, yet they accounted for only 20% of spending on prescription drugs.

Despite the huge savings possible with generics, they are still underutilized. American consumers and the health care system could save billions of dollars increasing usage of generic drugs. With a recent study by Medco showing that more than 50% of Americans now routinely take one or more prescription drugs for a chronic condition, generics will become increasingly important. Unfortunately, many consumers have been deceived by myths about generics that have been perpetuated by the brand-name pharmaceutical industry.

Brand-name drug companies now spend more than $5 billion a year marketing to consumers and more than $20 billion a year marketing to physicians. In addition to the message about any particular drug, there is an underlying set of myths in all such advertising – the inaccurate ideas that “newer is better,” that brand-name name drugs are superior to generic drugs, and that the more expensive a drug is, the more effective it must be. GPM was established to expose and confront these myths head-on, to provide consumers with the truth about generics, and to give them the tools to make smart choices about prescription drugs.

Increasingly, health plans and pharmacies urge consumers to switch to generics. Yet consumers sometimes view these messages skeptically, seeing them as self-serving. Materials and messages produced throuth the Generics are Powerful Medicine came from sources with no such self-interest. Although the campaign has ended, we believe that the materials still provide consumers with information about generic drugs that is not easily available and we will continue to post that information here. This will help overcome the skepticism that some consumers have about generics messages delivered by other entities.

Although the Generics Are Powerful Medicine Campaign has ended, The following links provide you with good information on generic drugs.

	Generics Brochure
	What Brand Name Drug Companies Don't Want You to Know
	Frequently Asked Questions about Generic Prescription Drugs
	My Medication List
	Generic Drug Quiz
	What Are Generic Drugs
	Prescription Drug Costs: Brand vs. Generic

 

Rx Litigation

United Senior Action is a proud member of the Prescription Access Litigation (PAL) project. PAL uses litigation as a strong tool to address drug manufacturers schemes to keep drug prices high.