If you received a letter from a drug company saying they can no longer provide drugs for free or at reduced prices because Medicare Part D prevents them from doing so, you may want to check with the company to see if they have recinded the letter.

Drug companies have been telling consumers that a provision in the Medicare drug benefit rules made the companies' subsidized drug programs illegal. But the federal Centers for Medicare & Medicaid Services (CMS) told them last week that this is simply not true.

"No company needs to end its patient assistance program on account of the drug benefit starting," according to an announcement from CMS. "There is nothing in the law that prohibits a pharmaceutical company patient assistance program from providing drug assistance to Medicare beneficiaries, even those enrolled in a Medicare prescription drug plan..."

CMS did note that any amount paid by the drug company to provide low-cost or free drugs to a consumer would not be counted as an "out-of-pocket" cost paid by the consumer for the purpose of meeting any deductable or co-pay requirement, since it was not actually paid for by the consumer.

At least one major drug company was believed to have reinstated its benefit program after the CMS announcement. A consumer's decision on whether to sign up for Medicare Part D, or what plan to choose, could depend partially on what drugs the consumer could receive under free or reduced-price drug programs operated by the drug companies.

Of course, even with this federal announcement, the subsidy programs operated by the drug companies are completely voluntary on their part, and they could choose to end them or change their requirements at any time.

I have posted the statement from the CMS on my website at http://scotthochberg.com/files/cms.pdf.

Scott Hochberg
State Representative
District 137 - Southwest Houston