Officials warn of drug card scams

Anna Marie Rider, 78, of Missoula, lost $299 to a company that promised her discounts on dental care. Her dentist wouldn’t accept the discount card. Before she could get her money back, the Indianapolis company, Total Card Benefits, shut down its phones.

“I’m very, very angry. If I had a magic wand, I would raise up the vigilantes,” Rider said by telephone Tuesday.

Scam artists may be piggybacking on the attention generated by the new and legitimate Medicare drug discount card program, said Washington state Insurance Commissioner Mike Kreidler at a Spokane press conference Tuesday. The press conference, organized by the Better Business Bureau, took place at the Washington attorney general’s Spokane office.

Lately, the Better Business Bureau in Spokane, which serves Eastern Washington, North Idaho and Montana, has received numerous questions from consumers about the new Medicare drug discount cards, which certain pharmacies began honoring Tuesday, and other cards promising discounts on medical care.

And last week, the Federal Trade Commission filed suit to freeze the assets of Phamacycards.com. The Delaware company allegedly electronically withdrew $139 from the bank accounts of thousands of consumers without their consent. The FTC advised consumers to regularly check their bank statements and dispute unfamiliar charges.

The Medicare discount drug card program is legitimate, set up as part of the Medicare reform law signed by President Bush last year. Confusion about the new cards and the number of companies offering them “opens the door for fraud,” said Jan Quintrall, president of the region’s Better Business Bureau.

Before buying a drug discount card, consumers should find out whether their pharmacy will honor the card and if it’s good for discounts on the drugs they take, Kreidler said. Find out how long the company offering the card has been in business, he advised. Ask whether the discounts are available without the card.

To report suspected fraud, call (800) MEDICARE. To get individual advice about Medicare drug discount cards, call the Statewide Health Benefits Advisors (SHIBA), at (800) 397-4422. In Idaho, call (800) 488-5725.

The state attorney general’s office has not opened any investigations of companies offering bogus health discount cards, but is processing complaints, said Assistant Attorney General Jack Zurlini.

Rider may never get her money back. She filed a complaint with the Better Business Bureau in Spokane and warns others to check out health-care discount cards with the BBB. Total Card Benefits, the company that she dealt with, has an unsatisfactory record with a BBB in Indiana and has not responded to any complaints.

“If it sounds too good, it probably is too good to be true,” Kreidler said.