Proceedings in Federal Court Concerning Medicare-endorsed Rx Drug Discount Card Initiative

Tom Scully, Administrator Centers for Medicare & Medicaid Services (CMS) announced on October 10 that CMS filed a motion in federal court to stay all proceedings related to the Medicare-endorsed Rx Discount Drug Card initiative, which was intended to provide relief to Medicare recipients who are forced to pay full price for their prescription drugs. “We plan to publish a proposed rule,” said Mr. Scully, “that reflects the comments previously received, and to solicit new public comments on the initiative to ensure that it is implemented as effectively as possible.”

CMS has asked the Court to stay all proceedings while CMS follows the federal notice and comment process. The proposed initiative will include mechanisms to offer relief to Medicare beneficiaries for their out-of-pocket drug costs while CMS also continues to work with Congress to enact Medicare reform, including a prescription drug benefit.

The Medicare-endorsed Rx Drug Discount Drug Card program, announced by President Bush on July 12, 2001, promised to give significant discounts to seniors and disabled Americans. Seniors and disabled Americans on Medicare are the only insured groups paying full over-the-counter prices for prescription drugs.