Published October 13, 2020
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Some Medicare beneficiaries may receive a $200 gift card to help pay for prescription drug costs, although certain details around the plan remain unclear.
President Trump announced the gift cards during a stop in Charlotte, NC, on September 24 while discussing details of his America First Healthcare Plan. Letters are expected to be sent out to some 33 million recipients of the cards the week of October 12. The actual cards however would likely not hit mailboxes until after the election.
The 33 million beneficiaries set to receive the cards include those who do not already receive government assistance for their Medicare prescription drug costs. The cards are to be used at pharmacies for drug copays and coinsurance.
Trump’s prescription drug gift cards would carry a price tag of around $8 billion – including $51 million to create and distribute the cards – and would be paid for out of the Medicare trust fund. The mailed letters alone are expected to cost $19 million.
The move is being documented as part of a Medicare program called the 402 demonstration, which is used to test various innovations surrounding billing or spending that could potentially save money or improve quality of care.
The White House has said the cost would be offset by the savings generated from a “most favored nations” plan, which would regulate drug pricing according to the costs paid in other countries. Trump signed an executive order for the most favored nations plan, but it has not yet been enacted.
Also included as part of the America First Healthcare Plan:
Check back with MedicareAdvantage.com for updates on the prescription drug cards and other provisions of the America First Healthcare Plan as they happen.
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