Merck Announces New Uninsured Discount Program Targeted to More Than 4

Merck Announces New Uninsured Discount Program Targeted to More Than 45 Million Patients without Drug Coverage

    Business Editors/Health/Medical Writers

    WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--April 19, 2005--Merck & Co., Inc. (NYSE:MRK):

--	Americans Worry about Losing Their Health Insurance/Prescription Drug Coverage More Than the Loss of a Job or Home, New Zogby Poll Reveals
--	Number of Uninsured Has Risen by 5 Million Since 2000

    Merck & Co., Inc., announced a new comprehensive prescription drug discount program today designed to benefit the more than 45 million uninsured in the United States. The Merck Prescription Discount Program, to be launched April 25, will provide all uninsured Americans, regardless of age or income, with easy and immediate access to discounts of 15 to 40 percent off many Merck medicines.
    "We are pleased to announce this new program that we believe will help uninsured patients get the Merck medicines they need," said Margaret McGlynn, President, U.S. Human Health, Merck. "While this program doesn't solve the problem of uninsured Americans, we believe it is a step in the right direction."
    Simultaneous to today's announcement, Zogby International released a national poll finding that a large percentage of Americans (49 percent) worry about losing their health insurance and prescription drug coverage more than the loss of a job (30 percent) and the loss of their home (37 percent).
    The data also suggest the possibility of a "Health Care Trap" where 2 in 5 workers (39 percent) "strongly agree" that they would remain in jobs they dislike because of their worry of losing their health care/prescription drug coverage if they were to leave, with an additional 18 percent "somewhat agreeing."
    The poll, which was commissioned by Merck, shows a pervasive worry of losing health care/prescription drug coverage by many Americans, with 84 percent characterizing the growing number of uninsured in this country as a "large problem."

    Commentary on the Merck Program

    Government officials from both parties -- including Secretary of the U.S. Department of Health and Human Services Mike Leavitt, U.S. Sens. Jon Corzine (D-NJ), Edward Kennedy (D-MA) and Rick Santorum (R-PA), U.S. House Majority Whip Roy Blunt (R-MO), U.S. Rep. Robert Menendez (D-NJ), and U.S. Rep. and Chair of the Congressional Black Caucus Melvin L. Watt (D-NC), and Govs. Mike Huckabee (R-AK), Bill Richardson (D-NM) and Tom Vilsack (D-IA), as well as leaders from national organizations such as AARP, the Alliance for Children and Families, the Alliance for Minority Medical Associations, and the League of United Latin American Citizens -- are voicing support for the new Merck initiative.
    "I applaud today's announcement by Merck to offer discounts on prescription drugs to America's uninsured regardless of age and income," Sec. Leavitt said. "The markdowns should lower health care costs and improve the health of the uninsured, a winning combination."
    "I am pleased to hear of Merck's new Prescription Discount Program to provide the uninsured access to Merck drugs they need at prices more like those paid by those fortunate enough to have good health insurance coverage," Sen. Kennedy said. "I hope all pharmaceutical manufacturers will follow Merck's example and make their medications more affordable."
    "As we search for ways to increase access to quality health care and affordable prescription drugs for the 400,000 uninsured New Mexicans, it is imperative that we enlist private-sector partners, like Merck, to provide discounts to our most vulnerable citizens. The Merck Prescription Discount Program offers tangible assistance for New Mexicans and all Americans who currently lack access to affordable medicine, " Governor Bill Richardson, said.
    "This effort shows that Merck is not only committed to researching and developing life-saving medicines, but also to ensuring that those in need of these treatments have access to them. I applaud Merck's creation today of its prescription drug assistance program for the uninsured," Sen. Corzine said.
    "I applaud Merck for its effort to help the many vulnerable Americans in our society who are uninsured. Through the launch of the Merck Prescription Discount Program, Pennsylvanians and millions of Americans will get the medicines they need. Private-sector initiatives, like the Merck Prescription Discount Program are important to providing access to affordable and quality health care for all Americans. I am encouraged by Merck's demonstrated commitment to its patients and to the uninsured," Sen. Santorum said.
    "AARP is encouraged by Merck's decision to provide a Discount Prescription Drug Program for the uninsured. This program is a welcome measure to help the 45 million Americans without access to needed medical care, including prescription drugs. We feel this initiative is in keeping with AARP's own ongoing efforts to make prescriptions affordable and accessible to all Americans," said John Rother, Director of Policy and Strategy, AARP.

    The "Canada Option"- Most Americans Favor Discount Card over Imports

    The Merck Prescription Discount Program comes as the debate over the importation of prescription medications continues. The Zogby poll released today shows that a majority of Americans who have imported drugs from other countries including Canada did so because of the cost savings (56 percent). However, the poll also found that 73 percent of respondents would join a discount prescription program and purchase their medications in the United States if the cost of their prescriptions were comparable. For most Merck products in the new Merck Prescription Discount Program, discounts are greater than or competitive to those available through Canadian pharmacies.
    "In accord with LULAC's commitment to advancing the health of the Hispanic population, we commend Merck's Prescription Discount Program for providing access to pharmaceutical drugs at a discounted rate for those without insurance," said Gabriela Lemus, Director of Policy and Legislation, League of United Latin American Citizens (LULAC). "We support Merck's culturally competent program that provides medicines for diseases disproportionately affecting Latinos."

    Number of Uninsured Continues to Grow in America

    According to the U.S. Census Bureau, an estimated 15.6 percent of the population - or 45 million people -- lacked health insurance coverage in 2003. Officials estimate that even more lack prescription drug coverage.
    More than 8 in 10 of the uninsured come from working families - 70 percent from families with one or more full-time workers and 12 percent from families with part-time workers.(1)
    Low-wage workers are at greater risk, as are those employed in small businesses, service industries and blue-collar jobs. Relative to their numbers in the overall population, members of racial and ethnic minority groups make up a disproportionate share of the uninsured population.
    The Merck Prescription Discount Program is the latest of many initiatives by Merck to improve access to its medicines in the United States and around the world. Merck has provided millions of low-income patients with free medicines through its U.S. Patient Assistance Program (PAP) for 50 years. The Merck PAP will continue to assist low-income patients, while the new discount program announced today will expand the Company's assistance to all uninsured patients regardless of age or income.
    "We believe our medicines should be available to everyone, regardless of whether they have drug coverage," Ms. McGlynn said. "Unfortunately, more than 45 million people in this country do not have such coverage. Until there is a public or private solution for this gap, Merck is offering help. We are stepping in to make an immediate difference in the lives of millions of people by helping uninsured Americans obtain access to our medicines."
    The Merck Prescription Drug Program and the Merck Patient Assistant Program also will be available through state-level prescription drug clearinghouse programs and the Partnership for Prescription Assistance, a national initiative launched by The Pharmaceutical Research and Manufacturers of America earlier this month to bring together member companies' patient assistance and discount programs in a single point of access. (For more information, go to www.pparx.org.)
    Many Merck medicines will be available through the Merck Prescription Discount Program, including such products as COSOPT(R)(dorzolamide hydrochloride and timolol maleate), EMEND(R) (aprepitant), FOSAMAX(R) (alendronate sodium), MAXALT(R) and MAXALT MLT(R) (rizatriptan benzoate), PROSCAR(R) (finasteride), SINGULAIR(R) (montelukast sodium), TRUSOPT(R) (dorzolamide hydrochloride) and ZOCOR(R) (simvastatin). (For a complete product list, go to www.merckuninsured.com)
    "As a physician, I see uninsured patients struggling to meet their health care bills including the cost of medication," said Dr. Margo Denke, a private-practice endocrinologist and professor at the University of Texas Health Science Center in San Antonio. "Whenever I write a prescription for my patients, cost has to be a consideration. And for patients who are paying for medications out-of-pocket, any cost savings can make a difference. The Merck Prescription Discount Program can help many patients better afford their (Merck) medications."

    The Program Provides Instant Access to Savings; Free and Easy Enrollment

    Starting April 25, under the Merck Prescription Discount Program, patients can present an innovative Instant Savings Certificate(2) to their pharmacist along with a valid prescription and immediately save at least 10 percent on many Merck prescriptions. The certificates will be available in pharmacies, doctors' offices, clinics, churches and community centers free of charge. Patients also can print out Instant Savings Certificates at www.merckuninsured.com.
    To obtain even greater savings of 15 to 40 percent, patients can enroll in the Merck Prescription Discount Program starting April 25. For example, under the program, an uninsured patient who now pays $82.86 a month for FOSAMAX at his or her local pharmacy will pay about $65.00 when enrolled in the Merck Prescription Discount Program, a savings of nearly 21 percent.
    Enrollment is free and easy; there is no annual membership or hidden fees. Patients can enroll starting April 25 by:

    -- Calling 1-800-50 MERCK (1-800-506-3725) between 8 am and 8 pm
    Eastern Time Monday through Friday. Spanish-speaking operators
    are also available.(3)

    -- Visiting www.merckuninsured.com

    -- Or mailing in an enrollment form that they can obtain at their
    local pharmacy and doctor's office.

    When patients enroll over the phone or web, they will receive an active membership ID that they can use right away at their local pharmacy to receive greater discounts without having to wait for their permanent membership card. They will receive their permanent Merck discount card in the mail within two weeks. Once enrolled, they can present their card with their prescription at virtually any U.S. pharmacy.
    Merck is launching an aggressive multimillion-dollar communications and grassroots campaign, including targeted communications to groups most at risk, to raise awareness of the program and encourage enrollment. National magazine and radio advertisements will begin appearing next month.
    "AMMA supports Merck's Prescription Discount Program's aggressive effort to get affordable medicines into the hands of the uninsured," said Randall W. Maxey, MD, President, Alliance for Minority Medical Associations (AMMA). "Merck's program is simple to participate in and it addresses a major health care problem that disproportionately affects minorities working without prescription insurance coverage."

    Legacy of Putting Patients First

    For 50 years, Merck has helped millions of people get Merck medicines through a variety of programs, including:
    Merck Program to Assist Medicare Enrollees -- In February 2004, Merck announced a new program to assist low-income Medicare enrollees who have exhausted their annual $600 transitional allowance from the federal government. Under the Merck program, once a low-income beneficiary has exceeded his/her government allowance, Merck will provide its medicines free to that beneficiary's participating discount card plan. Qualifying Medicare beneficiaries do not have to apply for this special discount from Merck; they can simply show their participating discount card when they fill their prescriptions to receive the discount. The dispensing pharmacy may charge fees, but Merck will receive no portion of these fees.
    The Merck Patient Assistance Program -- For 50 years, Merck has provided its medicines free through its Patient Assistance Program to millions of eligible low-income patients with no prescription drug coverage. Patients may qualify if they have a household income of $19,140 or less, $25,660 or less for couples, or $38,700 or less for a family of four. Through this program, Merck provided more than 5.6 million free prescriptions to nearly 700,000 patients in 2004. Call 1-800-727-5400 for more information.
    Additional Patient Assistance Programs -- There are separate patient assistance programs for a number of other prescription medicines, including CANCIDAS(R) (caspofungin acetate) for Injection, CRIXIVAN(R) (indinavir sulfate) Capsules, EMEND(R) (aprepitant), INVANZ(R) (ertapenem for injection), PRIMAXIN(R) (imipenem and cilastatin for injectable suspension) and PRIMAXIN(R) (imipenem and cilastatin for injection).
    Merck is committed to making sure its drugs reach people in need, anywhere in the world. In addition to its U.S. assistance programs, the Company donated in 2004 more than $400 million worth of medicines and vaccines in more than 60 countries to more than 40 million patients to address urgent health care needs and disaster relief in the developing world.
    For more information on both U.S. and worldwide Merck assistance programs, visit www.merckhelps.com.

    About Merck

    Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines in more than 20 therapeutic categories. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service. For more information, visit www.merck.com.

    Forward-Looking Statement

    This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. The forward-looking statements may include statements regarding product development, product potential or financial performance. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect Merck's business, particularly those mentioned in the cautionary statements in Item 1 of Merck's Form 10-K for the year ended Dec. 31, 2004, and in its periodic reports on Form 10-Q and Form 8-K, which the company incorporates by reference.

(1) The Kaiser Commission on Medicaid and the Uninsured, "The Uninsured: A Primer. Key Facts about Americans without Health Insurance," November 2004, pg 4.

(2) Not available to California residents.

(3) Enrollment by phone is not available to California residents.

Commentary on the Merck program

"I am pleased that Merck & Co. is taking this bold step to improve access to medicines for all of the uninsured, regardless of income. Currently, the nation's 45 million uninsured pay some of the highest out-of-pocket expenses for their medicine. I am confident that private sector programs like this one hold the solution to making medicines safe and affordable for working families." --U.S. House Majority Whip Roy Blunt, U.S. Representative (R-MO)

* * *

"We are pleased that Merck is taking proactive steps to address the serious issue of helping individuals in need afford their prescription drugs. Merck's program will help tackle many of the health ailments that impact millions of men across America. As an organization which believes that men's health affects women, children and the whole of society, we applaud Merck for covering drugs under this innovative program." --Jean Bonhomme, MD, MPH, Men's Health Network

* * *

"This effort shows that Merck is not only committed to researching and developing life- saving medicines, but also to ensuring that those in need of these treatments have access to them. I applaud Merck's creation today of its prescription drug assistance program for the uninsured." -- Jon Corzine, U.S. Senator (D-NJ)

* * *

"The Merck Prescription Discount Program will greatly benefit Hispanic senior citizens by offering discounts on many Merck medicines to those who lack health care coverage. This program will benefit not only our elderly, but also provide for the health and welfare of their extended families that care for them. Hispanic seniors, a group with significant language barriers and difficulties accessing health care, will be well served by Merck's straightforward program." -- Yanira Cruz, MPH, President & CEO, National Hispanic Council on Aging

* * *

"The Alliance for Children and Families applauds any and every pharmaceutical company for any and every meaningful step they take to improve access to life improving medications. Prescription discount programs such as Merck is announcing today contribute to a healthy society and strong communities for all children and families." --Peter Goldberg, President & CEO, Alliance for Children & Families

* * *

"The Merck discount card program is an innovation that can have a tremendous impact on the lives of those who do not have coverage for prescription drugs. By helping people, regardless of their income or age, better afford their medicines, Merck has provided a safe and affordable alternative for those who have been seeking to buy medicines from other countries. Helping uninsured individuals gain access to quality, affordable health care is the HLC's highest priority. While we move toward policy reforms, steps like this discount card help ensure that patients have access to the medicines they need. Merck should be commended for its commitment to patients and for developing a program that makes it so easy to achieve significant discounts on prescription medicines." -- Mary Grealy, President, Healthcare Leadership Council

* * *

"The Maryland Component of the National Medical Association is excited about Merck's new prescription discount program aimed at helping those in need of prescription assistance. This program will benefit people throughout the State of Maryland and throughout the country. We look forward to working with Merck to educate patients about this innovative and forward-thinking effort." -- Dr. Trudy Hall, President, Maryland Component of the National Medical Association

* * *

"Too many people go without needed medications simply because they don't have health insurance. I'd love to see every pharmaceutical company take this step." -- Orrin Hatch, U.S. Senator (R-UT)

* * *

"I think it is essential that the public and private sectors work together to find innovative solutions to the health-related challenges facing so many American families. One way we can all do this is to help people understand how discount cards can make a real difference in terms of what an elderly person pays for prescription drugs. The Merck Prescription Discount Program is a step in the right direction as it offers help to the uninsured regardless of age or income." -- Mike Huckabee, Governor (R-AR)

* * *

"I am pleased to hear of Merck's new Prescription Discount Program to provide the uninsured access to Merck drugs they need at prices more like those paid by those fortunate enough to have good health insurance coverage. I hope all pharmaceutical manufacturers will follow Merck's example and make their medications more affordable." -- Edward Kennedy, U.S. Senator (D-MA)

* * *

"Families and individuals without health care insurance are at risk each day. Solutions for many of the problems in offering affordable healthcare lie in private-sector partnerships such as this prescription drug plan from Merck & Co., Inc. As the Elderly Advocate in the State of Missouri, I am well aware of the difficulties our seniors and their families face each day with the costs of their prescription drugs. This plan gives Americans with real needs access to their medicines." -- Peter D. Kinder, Lieutenant Governor (R-MO)

* * *

"The National Council on Independent Living welcomes Merck's new prescription discount program. People with disabilities experience being uninsured at disproportionately high rates. Improved access to affordable medicines can significantly enhance the quality of our lives. We applaud this effort to reduce health disparities within our community." -- John Lancaster, Executive Director, National Council on Independent Living

* * *

"I applaud today's announcement by Merck to offer discounts on prescription drugs to America's uninsured regardless of age and income. The markdowns should lower health care costs and improve the health of the uninsured, a winning combination." -- Mike Leavitt, Secretary of the U.S. Department of Health and Human Services

* * *

"In accord with LULAC's commitment to advancing the health of the Hispanic population, we commend Merck's Prescription Discount Program for providing access to pharmaceutical drugs at a discounted rate for those without insurance. We support Merck's culturally competent program that provides medicines for diseases disproportionately affecting Latinos." -- Gabriela Lemus, Director of Policy and Legislation, League of United Latin American Citizens

* * *

"AMMA supports Merck's Prescription Discount Program's aggressive effort to get affordable medicines into the hands of the uninsured. Merck's program is simple to participate in and it addresses a major health care problem that disproportionately affects minorities working without prescription insurance coverage." -- Randall W. Maxey, MD, President, Alliance for Minority Medical Associations

* * *

"I applaud Merck for its launch of the Merck Prescription Discount Card program. This effort can help make important medicines more affordable to millions of Americans. Hispanics represent the largest number of uninsured in the U.S. and programs like Merck's can be of great assistance until the serious issue of the uninsured is addressed." -- Robert Menendez, U.S. Representative (D-NJ)

* * *

"Many members of the Puerto Rican and Hispanic community do not have health insurance. Merck's new Prescription Discount Program will help the most vulnerable Americans of Hispanic descent get the medicines they need to ensure the health of their families. By making prescription medicines more affordable, Merck is demonstrating the kind of corporate citizenship that can make a real difference in addressing one of the most serious issues facing the uninsured." --Manuel Mirabal, President & CEO, National Puerto Rican Coalition

* * *

"Merck's Prescription Discount Program is an important step toward eliminating health care disparities among patients without prescription drug coverage, regardless of age or income levels. Merck is to be commended for its outreach efforts to minority communities who are most in need of these benefits. By making information available in both Spanish and English, Merck is making strides to guarantee the program's success among Latinos, African-Americans and other diverse groups." -- Dr. Gary Puckrein, Executive Director, National Minority Health Month Foundation

* * *

"As we search for ways to increase access to quality health care and affordable prescription drugs for the 400,000 uninsured New Mexicans, it is imperative that we enlist private-sector partners, like Merck, to provide discounts to our most vulnerable citizens. The Merck Prescription Discount Program offers tangible assistance for New Mexicans and all Americans who currently lack access to affordable medicine." --Bill Richardson, Governor (D-NM)

* * *

"With this new program, Merck helps address one of the Latina community's largest concerns - taking care of our families. By providing the uninsured significant discounts on many of their prescription drugs, Merck is providing working families access to much needed medicines they other wise simply could not afford." -- Alma Morales Riojas, National President and CEO, MANA

* * *

"Thanks to Merck, many hardworking citizens now have an affordable option for needed prescriptions. This is a giant step in the fight for affordable health care." -- Joyce Rogers, President & CEO, Indiana Black Expo

* * *

"AARP is encouraged by Merck's decision to provide a Discount Prescription Drug Program for the uninsured. This program is a welcome measure to help the 45 million Americans without access to needed medical care, including prescription drugs. We feel this initiative is in keeping with AARP's own ongoing efforts to make prescriptions affordable and accessible to all Americans." -- John Rother, Director of Policy and Strategy, AARP

* * *

"I applaud Merck for its effort to help the many vulnerable Americans in our society who are uninsured. Through the launch of the Merck Prescription Discount Card program, Pennsylvanians and millions of Americans will get the medicines they need. Private-sector initiatives, like Merck's Prescription Discount Card program, are important to providing access to affordable and quality health care for all Americans. I am encouraged by Merck's demonstrated commitment to its patients and to the uninsured." -- Rick Santorum, U.S. Senator (R-PA)

* * *

"The National Grange welcome's the addition of Merck's new prescription discount program aimed at helping those in need of prescription assistance. The National Grange is committed to working with the pharmaceutical industry to provide our members with access to more affordable medicine. The program will benefit people throughout rural America and we look forward to working with Merck to making this forward-thinking program a success." -- Bill Steele, President, National Grange

* * *

"We have a responsibility to protect the health security of all Iowans by working to ensure access to affordable, high-quality health care. Improving access to health care for the uninsured requires the engagement and collaboration of the public and private sectors. The Merck Prescription Discount Program is a great example of the type of private-sector engagement that we need to encourage and foster." -- Tom Vilsack, Governor (D-IA)

* * *

"In keeping with the Congressional Black Caucus' Agenda to 'Close the Disparities' that continue to exist in our society, we applaud Merck for its proposed plan designed to create better access to affordable prescription medicines." -- Melvin L. Watt, U.S. Representative, Chair, Congressional Black Caucus (D-NC)

* * *

"The National Health Council commends Merck for offering its new prescription drug discount card. This new program will benefit people with chronic diseases and/or disabilities and other eligible enrollees who lack access to affordable prescription drug coverage. With the number of uninsured Americans on the rise, programs such as this are critical to helping millions purchase vital and necessary medications." -- Myrl Weinberg, President, National Health Council

    Zogby International

    Uninsured in America

    Key findings

    Zogby International conducted interviews of 1,001 adults chosen at random nationwide. All calls were made from Zogby International headquarters in Utica, N.Y., from 2/14/05 through 2/17/05. The margin of error is +/- 3.2 percentage points. Slight weights were added to region, party, age, race, religion and gender to more accurately reflect the population. Margins of error are higher in sub-groups.

    Americans are worried about losing their health insurance/prescription drug coverage more than the loss of a job or home

--	A large percentage of Americans (49%) worry about losing their prescription drug coverage and health insurance more than the loss of a job (30%) and the loss of their home (37%)
--	84 percent characterized the growing number of uninsured in this country as a "large problem"

    Americans would prefer purchasing medications in the United States over importation if cost effective

    -- 73% of Americans who have imported drugs from other countries
    including Canada because of cost savings would join a discount
    prescription program and purchase their medications in the
    United States if the cost of their prescriptions were
    comparable.

    Americans feel caught in a "health care trap"

    -- Two in five (39%) workers "strongly agree" that they would
    remain in jobs they dislike because of the need to maintain
    their health care/prescription drug coverage, with an
    additional 18 percent "somewhat agreeing."

    Drivers of importation

    -- Majority of Americans (56%) who have imported drugs from other
    countries including Canada did so to save money

    Americans view of pharmaceutical industry

    -- 65% viewed the industry with suspicion and felt that
    pharmaceutical companies do not do enough to help the
    uninsured.

--30--CD/ny*

CONTACT: Merck & Co., Inc. Media Contacts: Chris Loder, 908-423-3786 or Maggie Kohn, 908-423-5655 or Investor Contact: Graeme Bell, 908-423-5185

KEYWORD: NEW JERSEY INDUSTRY KEYWORD: INSURANCE MEDICAL PHARMACEUTICAL PRODUCT SOURCE: Merck & Co., Inc.

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