Seniors Warned of Fraud

By Dawn Shurmaitis, the Times Leader  

April 2004  

WILKES-BARRE - You've seen the TV commercial: The elderly woman cleans her pool as the dubbed voice of a rip-off artist gleefully chortles about stealing her identity and using her money to soup up his hot rod.

Beware, warns the AARP, if in the coming month someone telephones or rings your doorbell to sell you a Medicare discount drug card.  

The new discount drug cards will help seniors pay for prescription drugs.  

But, they can't be marketed over the phone or door-to-door, and cards sold that way might be fraudulent.  

"Guard against fraud. There will be companies and telemarketers attempting to capitalize on this new program. We're all fair game," cautioned John Nye, a volunteer with AARP, formerly the American Association of Retired Persons.  

AARP on Thursday sponsored a forum on the new Medicare prescription drug card.  

The two-hour forum, which attracted about 175 people to Genetti Hotel & Convention Center, provided information for seniors and near-seniors about the discount drug cards and sweeping changes to Medicare.  

Medicare is the nation's health insurance program for people 65-plus and some people with disabilities.  

Starting June 1, 17 Medicare-approved discount drug cards will be offered in Pennsylvania alone.  

The cards, which are optional and cost no more than $30 per year, will save Medicare recipients 10-15 percent on prescription costs. Discounts vary by card, and each plan is slightly different.  

The cards are temporary, and intended to provide interim help toward prescription drug costs from June 1 until the full Medicare drug benefit program begins in January 2006.  

The drug discount cards will be offered by private companies, including health insurers, Medicare HMOs and pharmacy benefit managers, according to the AARP.  

First, the AARP advised, decide if the discount card will help you. Second, shop around to find out exactly which card will help you best.  

If you are in a state Medicaid program with drug coverage, you will not be able to get the discount card. And if you have drug coverage through an employer or former employer, you may not need the discount card. If you have a low income, you also may qualify for a $600 credit on the discount cards.  

"I think it's very confusing," said Mary Ann McGrane, 75, of Wilkes-Barre , who attended the forum. "You have to worry about fraud, and be very careful which card you choose."  

Jane Carey, who also listened to the presentation and Q&A, said she was particularly interested in who qualifies for what.  

"I didn't understand them. But I'm more clear now," said Carey, 62, of Wilkes-Barre . "I'm trying to decide what's coming down the road."  

Jack Vogelsong, state coordinator for Apprise, a state health insurance counseling program under the Department of Aging, and Ray Landis, AARP's acting state director, fielded a wide variety of questions. Among them:  

"If a person qualifies under PACE for the $600 credit, is it cumulative? Can I carry it over?"  

"If one spouse is in a nursing home and the other in the community, are our incomes still combined?"  

"I just lost my job, and my prescriptions cost about $500 a month. I'm getting unemployment and Social Security, so which is the best pharmaceutical program for me?"

There weren't simple, easy answers to these questions and most of the ones that were raised.  

Landis acknowledged that the changes can be overwhelming and urged Medicare recipients to research their options and carefully read all information provided before making any decisions on which card, if any, to choose.  

"That's the thing that's so confusing about this program," Landis said. "For each individual in this room, there may be a different card. I'd have to know what drugs you take and which pharmacy you use."  

Certain cards, he said, may offer bigger discounts on certain drugs. Shop around, use the library's free Internet services to conduct research and contact senior programs with further questions.  

And remember: Discount card companies can only solicit business in the mail - not over the phone, the AARP cautioned.  

Don't buy any card that does not carry the official Medicare logo or that costs more than $30.  

Don't give your Medicare, Social Security or credit card number to anyone over the phone or at the door.  

"See what best works for you and your situation," Landis said. "Don't automatically sign up for the first card that comes in the mail."