Q: How can I decide which of the new Medicare drug-discount cards to get? It's very confusing.
A: It is indeed confusing. There are many competing cards available, and their costs vary from free to $30/year.
For a clear overview of the program, details on who is eligible for the drug-discount cards plus a comparison of prescription prices, go to www.medicare.gov. This site, which is updated every Monday, also has information about the $600/year credit available for certain low-income individuals -- those whose monthly income in 2004 is no more than $1,048 (single) or $1,406 (married).
AARP has done the most extensive study of the cards. Read the organization's free booklet, "Medicare Drug Discount Card: What You Need to Know" (#D18105). If you have very little income, also order "Medicare Drug Discount Card: Helping Those With Limited Incomes" (#D18102). Call AARP at 888-687-2277 or visit www.aarp.org. It's well worth your time to research the program. You could save 16% to 30% on brand-name drugs and 30% to 60% on generics.
Our inside source: Nancy Dunnan, a financial adviser and author in New York City . Her latest book is How to Invest $50-$5,000 (HarperCollins).