American officials say new Medicare rules will come into force which will protect the elderly and save companies loads of money, eventually permanent drug coverage will replace prescription cards in the year 2006.

In the rules, which were partly laid out last year, employers will get help to pay for the benefits of their staff after they retire.

Thommy Thompson, American Health and Human Services Secretary said that the cost of drugs will become more predictable.

The present card system has been the center of a lot of negative criticism. People say they are confusing and that the discounts they get are tiny.

When the coverage becomes permanent, insurance companies will still have to negotiate drug prices on behalf of their members. The idea is that the members will benefit from lower drug prices.

Included in the new medical cover will be a $35 monthly fee and $250 deductible. All prescription costs up to a maximum of $2,250 would be 75% paid for by the state. Then seniors pay for costs up to $3,600, after that the system would pay for 95% of the patient’s prescription costs.

Everyone who is the Medicare scheme would have cover. Seniors would have extra help. Some would end up paying very little.

You can see the plan at:
http://www.cms.hhs.gov/medicarereform