Judge Puts Bush’s Drug Discount Plan on Hold

A federal judge has temporarily halted a Bush administration plan to promote private prescription drug discount cards under Medicare.

Drugstore chains filed a lawsuit in July, arguing that the plan was unlawful because federal officials don’t plan to pay for the discounts. They also assert that the plan doesn’t clearly outline who must subsidize the lower prices.

The injunction, filed Thursday by U.S. District Judge Paul Friedman, will prevent the program from starting until he reaches a verdict.

President Bush wants to encourage all older Americans to use the cards, now commonly sold by private companies, by giving some of the cards what amounts to a government seal of approval. The cards can lead to discounts of up to 10% on some drugs, company officials say.

Tom Scully, a Medicare official overseeing the plan, said the administration will consider contesting the injunction.

“We are disappointed in the injunction because it will delay the administration’s efforts to provide immediate and necessary relief to the millions of Americans who are forced to pay full price for their prescription drugs,” Scully said. “The decision intensifies the need for Congress to act quickly on the president’s proposals for Medicare reform, including a prescription drug benefit.”

Craig Fuller, president of the National Assn. of Chain Drug Stores, said the drug program would only provide false hope to seniors.

“In this program it’s unclear what the savings would be and who would really pay the cost of selling drugs at a discount,” Fuller said. “We believe strongly that the nation’s seniors need a true prescription drug benefit, but we have consistently argued that the drug discount card does not provide any meaningful benefit.”

Medicare officials have said that the government would not pay for the cost of medicines or negotiate prices with drug makers.

Under the program, enrollees would be offered a selection of cards from companies that join the government program and meet certain standards, such as offering widely used medicines, senior administration officials have said. The cards would cost $25 for onetime enrollment. Discount amounts would be up to the company, not the government.