Abbott Laboratories To Offer Discounts on Five Drugs for Some Medicare Beneficiaries
Officials for Chicago-based Abbott Laboratories on Wednesday said that the company would expand its Medicare Assistance Program to provide discounts of between 50% and 85% on five prescription drugs to an estimated 4.7 million low-income Medicare beneficiaries, the Chicago Tribune reports. The discounts will be available to beneficiaries who have exhausted a $600 subsidy created under the new Medicare law (Japsen, Chicago Tribune, 5/20). Through the new Medicare drug discount card program, Medicare beneficiaries with annual incomes of less than $12,372 for individuals or $16,608 for couples will qualify for a $600 annual subsidy for their prescription drug costs. Beneficiaries who are ineligible for Medicaid drug coverage also can sign up for a discount card, which could have an enrollment fee of as much as $30 and likely will offer savings on at least one medication in each of 209 classes of treatments commonly used by Medicare beneficiaries. Those eligible for the subsidy do not have to pay enrollment fees (Kaiser Daily Health Policy Report, 5/19). Abbott's discounted prices will include $5 for a one-month supply of thyroid medication Synthroid and $12 for a one-month supply cholesterol drug TriCor, epilepsy and bipolar disorder drug Depakote or hypertension drugs Mavik and Tarka. Under Abbott's Medicare Assistance Program -- initiated in January 2003 -- the company already provides without cost the rheumatoid arthritis drug Humira to beneficiaries who lack drug coverage. According to officials, Abbott over the last year provided seniors with $80 million worth of Humira, which can cost at least $13,000 per year for people without drug coverage. William Dempsey, senior vice president of Abbott's pharmaceutical division, said, "You could think of this as an additional safety net. We think that this is an important program that is going to simplify the process." Eli Lilly, Novartis, Merck and other drug firms have also offered discount programs to low-income Medicare beneficiaries, the Tribune reports. CMS administrator Mark McClellan said the drug firms' discounts "are providing much needed interim assistance in lowering the price of prescription medications for seniors, especially for those who need it the most" (Chicago Tribune, 5/20).
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