It’s not enough that seniors have to pay high prices for the drugs they need. Now comes a warning of scams targeted specifically at seniors, and it makes me want to holler.
Beginning June 1, seniors and other Medicare beneficiaries may receive savings on their prescription medications using a special government-approved discount drug card, which can’t be sold for more than $30. Low-income beneficiaries will receive an additional $600 credit to help pay for their prescription medicines this year and in 2005.
Using the drug discount card program as a hook, crooks are trying to pry personal information out of seniors to commit identity theft or credit card fraud. According to federal and state officials, Medicare beneficiaries could also be sold bogus discount cards or persuaded that a certain drug card is approved by the government when it’s not.
“Anytime there is a new government program, unfortunately, there are those out there who will try to take advantage of people,” said Mark McClellan, administrator of the Centers for Medicare &Medicaid Services, which issued a warning cautioning people to be careful if they are approached to buy a drug discount card.
Reported cases of fraud have come from Medicare beneficiaries around the country, McClellan said. Authorities are investigating cases in which people received calls as well as in-person solicitations from individuals attempting to gain Social Security numbers, credit card numbers or bank account information.
“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.
The introduction of the discount drug program is part of the new Medicare law. A number of private companies are offering the Medicare-approved cards, including HMOs and insurance and pharmaceutical companies. How much people save will depend on what drugs they take, what pharmacy they use and the discount drug card they choose. That means it is going to be confusing just figuring out which discount card to get.
And confusion has always been the best tool to help con artists cheat people.
Just so you know, the prescription drug benefit goes into effect in two stages. The first step includes the issuance of discount cards, which can be used starting June 1. The discount drug card program is only temporary and will be phased out by Jan. 1, 2006. At that point, the cards will no longer work and will be replaced by a Medicare drug benefit.
Card sponsors can advertise their cards on television, on radio, in newspapers and via direct mail. But they can’t make cold calls or send representatives door-to-door.
So, 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.
Because it’s so easy these days to fake almost anything, the best way to avoid being a victim of a discount drug scam is to contact Medicare first before responding to a direct-mail offer or giving out any information to anyone claiming to offer an government-approved drug card.
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.
If you call, the wait might be long. McClellan said that because of the volume of calls, it could take up to 15 minutes before you are assisted. To speed things along, before you go to the Web site or call, have ready the names of the prescription drugs you take.
A list of companies federally approved to offer discount drug cards is available on the Web site or by calling. If you do buy a drug card, it should carry a “Medicare Rx Approved” seal.
When deciding which Medicare-approved discount card to sign up for, the Medicare Rights Center and AARP recommend you consider the following:
* Look to see which pharmacies accept which cards.
* Check to see whether the drugs you take are covered. If you take several medications, it could take some time to figure out which card covers the majority of your medications.
* If you travel often, you may want a card that will be accepted nationally.
* If you have drug coverage through an employer or former employer, you may not need a discount card. However, you may still want to compare the plans to find the best drug prices.
* If you have a Medigap plan with drug coverage, you may get lower prices using the discount plan.
Scams are so sophisticated and so hard to detect that your best defense is to just say no before ever saying yes to a deal. In the case of the new Medicare discount drug card program, call or go online before you give anybody any information or your money.
Washington Post Writers Group
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