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<classification authority="sudocs">GA 1.13:GAO-06-299R</classification>
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 <subject>Beneficiaries</subject>
 <subject>Federal aid programs</subject>
 <subject>Medicare</subject>
 <subject>Prescription drugs</subject>
 <subject>Program evaluation</subject>
 <subject>Program management</subject>
 <subject>Health care cost control</subject>
 <subject>Medicare Prescription Drug Discount Card</subject>
 <subject>and Transitional Assistance Program</subject>
 <type>Correspondence</type>
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<titleInfo>
 <title>Medicare: Sponsors&apos; Management of the Prescription Drug Discount Card and Transitional Assistance Benefit</title>
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<abstract>The Medicare Prescription Drug, Improvement, and Modernization
Act of 2003 (MMA) added a prescription drug benefit to the	 
Medicare program, which became effective January 1, 2006. To	 
assist Medicare beneficiaries with their prescription drug costs 
until the new benefit became available, the MMA also required the
establishment of a temporary program, the Medicare Prescription  
Drug Discount Card and Transitional Assistance Program, which	 
began in June 2004. The drug card program offers Medicare	 
beneficiaries access to discounts off the retail price of	 
prescription drugs at the point of sale. All Medicare		 
beneficiaries, except those receiving Medicaid drug coverage,	 
were eligible to enroll in the drug card program. Certain	 
low-income beneficiaries without other drug coverage qualified	 
for an additional benefit, a transitional assistance (TA) subsidy
that can be applied toward the cost of drugs covered under the	 
drug card program. Drug cards were offered and are managed by	 
private organizations, known as drug card sponsors. General drug 
cards were available to all eligible beneficiaries living in a	 
card&apos;s service area; there are both national and regional general
cards. Exclusive and special endorsement drug cards were	 
available to specific beneficiary groups. Some drug card sponsors
offered more than one drug card. The Centers for Medicare &amp;	 
Medicaid Services (CMS)--the agency within the Department of	 
Health and Human Services (HHS) that manages the Medicare and	 
Medicaid programs--administers and oversees the drug card	 
program. In response to a Congressional request, we examined drug
card sponsors&apos; management of the drug card and TA benefit and any
challenges that sponsors experienced in meeting program 	 
requirements. Specifically, we (1) identified how drug card	 
sponsors provided beneficiaries access to discounted drugs and	 
the discounts obtained through these arrangements; (2) reviewed  
how drug card sponsors managed the TA benefit, including the	 
enrollment of low-income beneficiaries and management of the TA  
subsidies; and (3) identified any benefits other than discounts  
on prescription drugs that drug card sponsors provided to	 
beneficiaries.</abstract>
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<identifier type="preferred citation">GAO-06-299R</identifier>
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<note>Correspondence</note>
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 <searchTitle>GAO-06-299R; Medicare: Sponsors&apos; Management of the Prescription Drug Discount Card and Transitional Assistance Benefit;
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<subject>
 <topic>Beneficiaries</topic>
 <topic>Federal aid programs</topic>
 <topic>Medicare</topic>
 <topic>Prescription drugs</topic>
 <topic>Program evaluation</topic>
 <topic>Program management</topic>
 <topic>Health care cost control</topic>
 <topic>Medicare Prescription Drug Discount Card</topic>
 <topic>and Transitional Assistance Program</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Statutes at Large</title>
  <partNumber>Volume 117 Page 2066</partNumber>
</titleInfo>
 <identifier type="Statute citation">117 Stat. 2066</identifier>
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