Avoiding Medicare Prescription Card Program Fraud

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Medicare prescription card is designed to help seniors, who are not receiving Medicaid drug coverage, save money on prescription drugs. Those who are eligible for the prescription card program may purchase Medicare-approved discount cards from private health care providers for $30.

Medicare Card Fraud

Alarmingly, there has been much confusion over the Medicare Prescription Drug Improvement and Modernization Act of 2003 and what it actually entails. This federal law was intended to introduce tax breaks and subsidies to help more seniors save money on prescription drugs; however, many accuse the government of not having done enough to educate the public about these laws and what the involved changes actually mean, leading to a widespread “Medicare Confusion.”  

Unfortunately, many opportunists have taken advantage of the general uncertainty surrounding these cards and new laws by scamming Medicare members into spending money on what they’re lead to believe is the genuine Medicare prescription card, but in reality are fraudulent articles that have either not been approved by Medicare or are completely counterfeit.

Medicare Card Identity Theft

As Medicare is a social insurance program, it is the only form of insurance that requires members to use their social security number for identification. Con artists looking to snatch seniors’ social security numbers in order to steal their identities may pose as prescription card programsalespeople. Seniors must be highly cautious and wary of any who would attempt to sell you these cards. One must always make sure to confirm in advance if a provider is indeed Medicare-approved. Additionally, one can discern between genuine and counterfeit cards by looking for the federal government seal stamp that will be located on the genuine article.

Just as the Medicare donut hole has failed seniors by having them pay thousands of dollars out of pocket before the government will step in to provide assistance, the Medicare card program contains loopholes that greedy providers can take advantage of. Some have lured seniors into paying more than should be necessary for their meds by offering attractive discounts on medicines, only to spike the already high costs of prescription drugs soon after the card has been purchased and obtained.

If consumers should suspect a Medicare prescription card scam is being perpetrated in their area, one can contact the Office of the Inspector General in the following ways:

Phone: 800-HHS-TIPS (800-447-8477)
Fax: 800-223-2164
E-Mail: HHSTips@oig.hhs.gov

Office of the Inspector General

HHS TIPS Hotline
P.O. Box 23489
Washington, DC 20026