HHS awards CSC $46 million Medicare drug card IT support

The Health and Human Services Department's Centers for Medicare and Medicaid Services has reached an agreement with Computer Sciences Corp. to provide Medicare Drug Discount Cards. The deal is valued at $46 million over 20 months.

CSC will enroll Medicare beneficiaries in its Drug Discount Card program, a component of the Medicare Modernization Act of 2003. The program lets Medicare beneficiaries receive savings on purchases of prescription drugs, and provides $600 per year in assistance to low-income beneficiaries.

Low-income recipients are eligible for the transitional assistance, which covers the Medicare Drug Discount Card enrollment fee and provides a $600 annual subsidy toward the cost of prescription drugs.

CSC is one of three Medicare Drug Discount Card providers that will serve residents of long-term-care facilities nationwide and is the only provider for American Indians.

CSC will provide project management, enrollment processing and customer service center operations. The company will be responsible for client relationships, financial management, and developing and maintaining a compliance program. It will perform Medicare Drug Discount Card program work at its offices in Baltimore, Cleveland and Rensselaer, N.Y.

Organizations offering Medicare discount drug cards will market them to seniors. In late April, HHS will provide price comparisons, enrollment fees and other services at www.medicare.gov.

The Medicare legislation also provides for a federal drug benefit program in Medicare to begin in 2006.

About the Author

Mary Mosquera is a reporter for Federal Computer Week.

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