Seniors Warned About Phony Rx Discount Card Scams

March 19, 2004

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Medicare officials warn that scam artists in a number of states are targeting Medicare beneficiaries with "fraudulent ... schemes" related to the new prescription drug discount card program.

The discount card program, which will begin in May, was created as part of the new Medicare law to help beneficiaries save about 10% to 25% on their prescription drug costs until the program's prescription drug benefit takes effect in 2006. Medicare plans to announce which companies will be authorized to offer the prescription drug discount cards in the next few weeks, and it will begin advertising the program in May.

Eleven states have reported instances of individuals making phone calls or door-to-door solicitations of seniors, ostensibly to register them for the new program. The individuals allegedly offer to enroll beneficiaries in exchange for their bank information, social security number or credit card number.

States reporting such scams include Alabama, Georgia, Idaho, Maryland, Nebraska, New York, Oklahoma, Pennsylvania, Rhode Island, Virginia and Washington.

Officials of the Centers for Medicare and Medicaid Services warned that seniors should be on guard against such solicitations and emphasized that Medicare contacts its beneficiaries only by mail.

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