Companies Propose New Medicare Drug Aid Plans in US
By Lisa Richwine
WASHINGTON — Major drug makers unveiled new plans on Wednesday to help needy Medicare patients who cannot afford their medicines even with the program’s new drug coverage.
The announcements came a day before the chief executives of several pharmaceutical companies were set to meet with senators who are pressing them to keep providing free or discounted drugs to certain Medicare beneficiaries.
The Medicare prescription drug benefits that started in January put the future of such "patient assistance programs" in doubt. Many companies suspended them because they were unsure if they would still be legal.
An opinion issued last month by the Health and Human Services’ Office of Inspector General indicated companies could craft the plans so they did not violate the law.
Johnson & Johnson said it was seeking inspector general approval for a program to be offered by a coalition of drug makers to help low-income patients who fall into the Medicare "doughnut hole" when annual out-of-pocket costs range between about $2,250 and $3,600 and are generally not covered.
Companies would provide cash subsidies equaling 65 percent of drug costs, with the patient paying the remaining 35 percent, David Martin, president of Johnson & Johnson Health Care Systems, said in an interview. Five companies so far have agreed to participate, he said.
Eli Lilly and Co. Chief Executive Sidney Taurel said his company was asking the inspector general to clear a proposal to offer its osteoporosis drug Forteo and schizophrenia drug Zyprexa to some needy patients for a $25 monthly fee. Both drugs can cost patients hundreds of dollars a month.
"The two products we have selected are really the bulk of the LillyAnswers program," an existing plan to help people without Medicare drug coverage, Taurel said during an appearance at the Henry J. Kaiser Family Foundation in Washington.
LillyAnswers, which covers a variety of drugs, will be extended until the end of the year for people eligible for Medicare drug coverage who have not enrolled, Taurel said.
The value of drugs provided through Lilly’s assistance programs in 2005 was $450 million, Taurel said.
AstraZeneca Plc said it was expanding an existing program that provides help with drug costs to low-income seniors with Medicare drug coverage, known as Part
D.
"AstraZeneca does not see Medicare Part D as a barrier to companies providing additional help to low-income seniors," AstraZeneca US President and CEO Tony Zook said in a statement.
Medicare is the federal health insurance program for the elderly and disabled.
The CEOs invited to meet with Iowa Republican Sen. Charles Grassley on Thursday include the heads of Lilly, Johnson & Johnson, AstraZeneca, Bristol-Myers Squibb Co., GlaxoSmithKline Plc, Merck & Co. Inc., Pfizer Inc. and Schering-Plough Inc.