The Medicare Prescription Drug Discount Card:
Separating the Real Deal from the Scams

From November/December 2004 NCL Bulletin (Vol. 66, No 6.)
 

For months now, Americans on Medicare have been able to sign up for prescription drug discount cards, a part of the Medicare prescription drug law that was passed this time last year. Unfortunately, forecasts of a multitude of Americans taking advantage of the cards have not come true, and earlier this month the Associated Press reported that, according to Medicare Chief Mark McClellan, only about 1.5 million low-income Americans have signed up for a card. More than three times that many had been expected to enroll in the program by year’s end, and more than 7 million people are eligible.

Perhaps contributing to the problem of under-enrollment are reports of fraud. In order to achieve higher enrollment levels, private companies that sponsor the drug cards are sending them directly to people who qualify. In October 2004, these companies sent nearly 2 million cards to low-income people, requiring a simple phone call to activate the card and government assistance, according to AP.

Con artists have taken advantage of this enrollment practice, and they’ve begun trying to cash in by pretending to offer the cards. Their real objective is to steal consumers’ personal information, their money, or both. In Illinois, for example, Attorney General Lisa Madigan has filed suit in federal court against a group of companies – including two Canadian telemarketing firms – that used confusion over a discount prescription drug card program to drain money out of consumers’ checking accounts after convincing them to give up sensitive financial information.

According to an investigation by Madigan’s office, approximately 103 Illinois consumers were bilked out of nearly $90,000, which was debited out of their checking accounts after a smooth and aggressive sales pitch led them to provide to the salespeople the bank routing information from the bottom of their checks.

Kansas Attorney General Phill Kline has also filed suit against a Florida company for similarly taking advantage of—and money from—consumers seeking a discount card.

In order to help prevent consumers from falling prey to scams involving the discount cards, NCL has advice available at www.fraud.org. Here’s what you need to know to take advantage of the Medicare discount drug card program and protect yourself from fraud.

• The Medicare drug discount card is available to people enrolled in Medicare, but not everyone on Medicare is eligible. If you are in a state Medicaid program that provides drug coverage, you can’t get a Medicare drug discount card.

• Look for government-approved Medicare drug discount cards. The cards are offered by private companies but must be approved by the U.S. Department of Health and Human Services (HHS) and display the “Medicare Rx Approved” symbol. For a list of approved cards and other information about the program go to the Medicare Web site, www.medicare.gov or call toll-free, 1-800-633-4227, TTY 1-877-486-2408. This government hotline is often busy, so you may have to keep trying (the best time to call is Thursday through Sunday from 6 pm to 6 am Eastern time). AARP also has helpful information at www.aarp.org/legislative/prescriptiondrugs/rxcard/.

• Under federal law, the annual fee for Medicare drug discount cards can’t be more than $30. Some companies charge a lower fee or nothing at all for the card. Once a card is purchased, the annual fee can’t be refunded.

• If you get an uninvited call, email, or knock at your door to sell you a card, it’s a scam. Under the program, companies can advertise their cards by mail, television, radio, and newspapers or other print media. But they are not allowed to call, send emails, or come to your home to sign you up for their cards unless you asked them to.

• Don’t be fooled by sales materials that look like they’re from the government. Though this is a government-sponsored program, it is private companies, not the government, that offer the cards. Con artists often try to impress people by making their sales materials look like they come from an official government agency.

• Guard your personal information carefully. Identity thieves posing as drug discount card companies may try to steal it to use for their own illegal purposes. Only give your Social Security number, credit card or bank account number, or Medicare number if you are sure that a company offering a Medicare-related product or service is legitimate.

• Be aware that not all Medicare discount drug cards are the same. Prices for specific drugs vary widely from card to card, and some cards are only honored at certain pharmacies. Which card best fits your needs depends on what prescriptions you take and what pharmacies you use. If you have drug coverage through your current or former employer, you may find that Medicare drug discount cards don’t offer greater savings. You may also find better prices simply by shopping around, without using a card.

• You don’t have to get a Medicare drug discount card. This program is voluntary; if someone says you have to sign up for a card, it’s a scam.

• The Medicare drug discount card program is temporary. The cards will only be used until January 1, 2006, when the federal government will provide a new drug benefit as part of Medicare.  The full drug benefit will be rolled out starting in November of 2005.

• Low-income people can get additional Medicare drug benefits. If your income is less than $12,569 for a single person or $16,862 for a married couple, you’re entitled to a Medicare drug discount card for free and you may get up to $600 a year in 2004 and 2005 to help pay for your prescriptions. Information is available at the Medicare Web site or through the toll-free number.

• Report suspected drug discount card scams. Call the Office of Inspector General at HHS toll-free, 1-800-447-8477, TTY 1-800-337-4950 (note that information about the Medicare drug discount card program is not available at this number). You can also report Medicare-related fraud by sending an email to HHSTips@oig.hhs.gov or writing to Inspector General, Department of Health and Human Services, Attention: Hotline, 330 Independence Avenue SW, Washington, DC 20201.

Tips for Buying Drugs Safely Online

• Don’t buy from an online seller that doesn’t require a prescription. It's against the law to sell prescription drugs to people who don’t have prescriptions for them. Reputable online drug sellers verify each prescription they receive before filling the order. Always talk to your doctor before taking any prescription drugs.

• If you don’t already have a prescription, don’t deal with a Web site that will provide one based on an online questionnaire, without an in-person physical exam.

According to the Food and Drug Administration (FDA) and the American Medical Association, if you get a prescription without a physical exam, you could receive a drug that is inappropriate, or even dangerous because of a condition that you might not realize you have. Your doctor will also have a record of any other drugs you are taking and can make sure any new drug you take will not dangerously interact with the drugs you are already taking.

• Don’t buy from a site that advertises “miracle drugs” for a new cure for a serious disease. These drugs are not usually approved by the FDA and could be dangerous or not effective. Other danger signs include claims for a “new cure” for a serious disease, or use of impressive sounding terminology to disguise a lack of good science.

• Make sure a licensed pharmacist is available to answer your questions. Whether you’re buying prescription drugs online, through the mail, by telephone, or in person, reputable sellers should have pharmacists available to answer questions.

• Beware of online pharmacies that don’t list an address or toll-free phone number to contact in case of a problem. They may be deliberately attempting to make it harder to track them down.

• Avoid Web sites that only sell a limited number of medications, especially “lifestyle” medications that treat obesity, impotence, herpes, pain and acne. Such Websites are designed to attract consumers who have privacy concerns and wish to avoid an in-person doctor’s visit. The Websites are more likely to sell prescription drugs without legitimate prescriptions.

• When you buy medications online, make sure the seller is properly licensed. Check with your state board of pharmacy or the National Association of Boards Pharmacy at www.nabp.net (click on “Who We Are” on the left and then “Boards of Pharmacy” for a list of state boards) or call 847-698-6227. These sources can tell you if the online seller is licensed. You should check the state board of pharmacy where the online seller is located, and your own state board of pharmacy. Some sites display a seal, such as the National Association of Boards of Pharmacy’s VIPPS seal, as proof that the site has met state and federal requirements. Dealing with pharmacies that display the VIPPS seal, or other similar certification seals, gives you more confidence that they and the products they sell are legitimate. See a list of VIPPS-accredited pharmacies at: http://www.nabp.net/vipps/consumer/listall.asp

• If you suspect you have bought a counterfeit drug online, report it. Notify the online drug seller. You should also report your suspicions about counterfeit drugs bought online to the FDA. Use the online reporting form at http://www.fda.gov/oc/buyonline/buyonlineform.htm or call the FDA’s Medwatch program at 1-800-332-1088. In addition, ask your doctor for medical advice if you believe you have taken a counterfeit drug.

• If you believe an online drug seller is selling prescription drugs without a license, without prescriptions, or in violation of other laws, report it. Use the FDA’s online form at http://www.fda.gov/oc/buyonline/buyonlineform.htm or call the FDA’s Medwatch program at 1-800-332-1088. You should also report your suspicious to your local state board of pharmacy, or the National Association of Boards of Pharmacy at: http://www.nabp.net/vipps/consumer/report.asp

• Be a well-informed consumer. The FDA has tips about buying drugs online at http://www.fda.gov/oc/buyonline/default.htm. There is also information from the FDA about counterfeit drugs at http://www.fda.gov/oc/initiatives/counterfeit/qa.html.

Source: http://fraud.org/fakedrugs/onlinerx.htm