Collins said

the proposed prescription drug discount card is an example of the administration's

effort to provide better services and lower drug costs to seniors. Thompson

said groups will issue the cards and provide discounts based on the combined

purchasing power of millions of Medicare recipients.

The cards could

cut prices of name-brand drugs by an average of 24 percent, and generic

drugs by 40 percent. Medicare recipients could join a prescription drug

discount card plans by paying an enrollment fee not higher than $25 per

year.

Collins told

Thompson he is pleased the plan includes local pharmacists, saying, "The

neighborhood pharmacist is one of the most trusted persons in the community

and probably answers more questions concerning medication than even the

physician who writes the prescription in the first place."

Calling the

card "just the first step in reform needed to address problems in

the Medicare system," Collins said it is a positive move by the Administration,

although stronger reforms, such as a prescription drug benefit program,

require Congressional action, he believes.

"The Administration

is committed to working with Congress to provide a prescription drug benefit

under Medicare and to make the changes necessary to make the Medicare

system more responsive," said Collins. "By granting states more

control, more choices to recipients, and greater efficiency, the Administration

and Congress will greatly improve Medicare.

"If we

act now, we have a chance to secure the program and fulfill its promises

to our seniors," he continued. "If we don't and choose to remain

complacent, the problems will catch up with us. For example, Medicare's

Part A begins paying out more than it takes in revenue in 2016. Fortunately,

the Administration is committed to working with Congress to ensure Medicare

will meet its commitments now and in the future."