BRIDGE RX

Medicare | Rx Companies Developing Plan
To Provide Discounted Drugs To Fill 'Doughnut Hole'
in Medicare Drug Benefit

[Feb 07, 2006]
A group of seven pharmaceutical companies is working on a plan that would provide discounted prescription drugs to Medicare beneficiaries whose annual drug costs fall into the so-called "doughnut hole," or the gap in coverage under the new Medicare drug benefit.

According to documents filed on Jan. 12 with the HHS Office of Inspector General, the pharmaceutical companies are joining together to provide discounts of at least 50% on their drugs when qualifying Medicare beneficiaries reach the doughnut hole.

The Bridge Rx program, which the companies hope to announce in April and launch in May, would have co-payments of at least 15%, the Journal reports. Medicare beneficiaries with annual incomes between $14,000 and $18,620 would qualify for the program, as would beneficiaries who have annual incomes lower than $14,000 and assets that make them ineligible for additional financial help under the drug benefit.

The projected budget for the program's first year is $30 million, with projected enrollment in 2006 of more than 500,000 Medicare beneficiaries. Companies that plan to participate in the program include AstraZeneca, Johnson & Johnson, Novartis and Bristol-Myers Squibb.

A coalition of drug manufacturers is working on a plan to help millions of low-income seniors pay for drugs when they hit the so-called doughnut hole in the new Medicare drug benefit.