The administration has launched an offensive aimed at countering Democratic criticisms that new drug discount cards are too confusing and only offer meager savings to senior citizens.

Mark McClellan, administrator of the Centers for Medicare and Medicaid Services, has estimated the cards would save seniors 10% to 17% off the average retail price for name-brand drugs.

The drug cards were created by last year’s Medicare law and serve as an interim mechanism to help seniors with health costs until a full prescription drug benefit is created in 2006.

Democrats say the drug cards are confusing and offer little if any savings from prices already available to consumers at online pharmacies like drugstore.com and Costco.com.

McClellan predicted that prices will drop as card issuers and drug manufacturers begin to see what competitors are charging and negotiate better deals. Drug card issuers –including health insurers and pharmacies – can change their prices once a week. Seniors may only switch cards once after initial enrollment.

McClellan rejected a call from congressional Democrats to implement a 30-day “grace period” that would allow seniors to change cards after they sign up. He instead urged seniors to wait to sign up and compare prices carefully.

CMS is still opposed to liberalizing importation of prescription drugs from countries where they often sell for less than in the U.S.

The issue of drug prices is important to voters this election year, and many lawmakers on both sides of the aisle have responded by pushing for legislation to allow importation. Secretary Tommy Thompson has acknowledged that the issue had gained such momentum that an importation law could pass this year.