Scam Artists Target Medicare Recipients

The Medicare Program has changed in important ways during the past few months. But despite all of the ads and press we’ve seen and heard, much confusion remains surrounding the new and complex Medicare prescription-drug-benefit law.

The 678-page Medicare Prescription Drug, Improvement and Modernization Act of 2003 covers a lot of ground, but the most significant changes are the following:

• Medicare will begin offering optional prescription-drug coverage in 2006.
• As an interim measure, Medicare-approved prescription-discount cards will become available in a few months.
• Medicare drug cards will NOT be sold via any telemarketer or door-to-door salesman.
• Beneficiaries can sign up for the cards in May and start using them in June.
• The Medicare Web site will have a list of all approved cards, starting April 1, 2004.
• Beneficiaries may have only one Medicare-approved drug discount card, but may retain other cards they currently have.
• Beneficiaries should use the card with the lowest price for the drug being purchased.

I am concerned that Arkansas’ seniors are going to be susceptible to scams that are already popping up here and elsewhere around the nation. Scam artists have been selling fake Medicare-discount cards to seniors by going door-to-door or through sales by telephone, under the guise that they are part of the Medicare law signed in December by President Bush.

My Public Protection Department has been getting complaints from seniors who are unsure about what the Medicare Act of 2003 means to them. While it’s too early to summarize this very complicated law into a few simple words, it’s important to let the public know that no Medicare-discount cards have been approved and enrollment does not begin until May.

But already, some people are promoting the cards as if they had received a federal seal of approval.

In April, the federal Center for Medicare and Medicaid Services will begin mailing informational letters to all Medicare recipients. The letters will contain an illustration of the official government seal and will tell seniors how and where to apply for the cards.

In 2006, the new Medicare plan will include the first federally mandated drug benefit to help seniors cover some of their costs. Aside from remembering that it won’t go into effect for two years, it’s also important to note that most seniors won't be able to purchase additional insurance to help pay for the out-of-pocket medication expenses that the new benefit doesn’t cover. And a detail that isn't getting much coverage is that the government plans to start indexing deductibles and premiums to the annual growth in average per-capita spending by Medicare beneficiaries, and to one’s income level. In other words, you can expect your Medicare bills to rise, perhaps substantially, every year. So it’s crucial that you find a Medicare plan that's right for you.

Beneficiaries should not give anyone their personal identifying information. Medicare has not begun its enrollment, marketing or outreach process yet for beneficiaries regarding the prescription-discount-drug program.

The discount card will offer temporary assistance to the elderly and disabled until Medicare provides a full-fledged drug benefit in January, 2006. For more information, you may wish to visit the official Medicare Web site, www.medicare.gov or call toll-free 1-800-MEDICARE. I urge anyone receiving suspicious offers of drug-discount cards to contact the Consumer Protection Division of my office.