CONSUMER NEWS RECALLS COMPLAINT FORM SCAM ALERTS

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Scam Artists Target Medicare Drug Cards

May 24, 2004

Medicare Drug Cards
• Confusion as deadline nears
• Scam artists target drug cards
• Report calls for automatic enrollment
• Medicare.gov
• Medicare News

The Medicare drug discount cards have been fertile ground for scam artists around the country. The Illinois attorney general's office is investigating 13 complaints related to the new cards. Nine involved telemarketers looting up to $299 out of the bank accounts of seniors, who were tricked into thinking they bought legitimate Medicare-approved drug cards.

The Massachusetts attorney general's office issued a warning after receiving complaints about a company that sent solicitations crafted to look like an official government mailer - it could fool people into believing the company was selling a Medicare-approved drug-discount plan.

Medicare-approved card sponsors:
Aetna Health Management LLC;
Caremark Advantage, Inc.;
Catalyst Rx;
Medco Health Solutions Inc.;
PMB Plus Inc.;
PharmaCare Management Services Inc.;
Pharmacy Care Alliance Inc.;
Scrip Solutions LLC;
SXC Health Solutions Inc.;
United Healthcare Insurance Co. (with AARP);
WellPoint Pharmacy Management;
Express Scripts Inc.;
Argus Health Systems Inc.;
Computer Sciences Corp.;
WHP Health Initiatives Inc.;
AdvancePCS Health LP;
First Health Services Corp.; and
Long Term Care Pharmacy Alliance LLC.

"Anytime there is a new government program, unfortunately there are those out there who will try to take advantage of people," said Mark McClellan, the administrator of the Centers for Medicare & Medicaid Services (CMS), which along with the Office of Inspector General recently issued a warning cautioning people to be careful if they are approached to buy a drug-discount card.

Reported cases of possible fraud have come from Medicare beneficiaries around the country, McClellan said.

"We haven't seen large-scale fraud yet, but we've seen enough to make us want to make sure Medicare beneficiaries are protected," McClellan said.

California Attorney General Bill Lockyer warned seniors to be on guard against fraudulent solicitations. Deceptive sales practices already have occurred in other states. Seniors should especially be careful about buying cards from non-Medicare-approved companies, said Lockyer, and about giving out personal identification information. He added consumers should never provide solicitors their bank account numbers or passwords.

To avoid costly errors:

• Don't give out any personal or financial information over the phone or face-to-face. Medicare-affiliated discount card providers will not solicit business by going door-to-door or by making phone calls.
• Don't pay large sums of money up front. Medicare discount drug cards don't cost more than $30 a year.
• Legitimate Medicare cards will have the official Medicare seal on them.
• Don't rush into choosing a plan. The Medicare discount drug card is a voluntary program and benefits can be taken advantage of at any time after June 1.

Card sponsors can advertise their cards on television, radio, in newspapers and via direct mail. But they can't make cold calls or send representatives door to door.

If you're a Medicare beneficiary, you should not be getting a call out of the blue from a card sponsor unless you requested information based on an ad you saw or direct mail you received.

For help in determining which cards are approved by Medicare, or if you need help selecting the most cost-effective card, go to www.medicare.gov or call the agency toll-free at (800) 633-4227.

July 7 2008

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