PROGRAMS & SERVICES

Alerts & Advisories

Here for quick reference are Consumer Alerts and information on refunds available to Californians from consumer protection action brought by Attorney General Lockyer. See Consumer Refunds Info.

FIRST, CHECK THIS OUT . . .

Attorney General Lockyer says California consumers should check the facts before buying prescription drug discount cards now authorized by Medicare to avoid paying for empty promises. The Attorney General also warned consumers to be alert for fraudulent solicitations that have appeared in other states.

"Our seniors have paid exorbitant prices for prescription drugs for too long, and they cannot afford false hope and false promises," Lockyer said. "Consumers should make sure that buying drug discount cards makes financial sense and that the promised savings are real."

Touted under a new Medicare program as a way to save money, prescription drug discount cards are now being sold by private businesses and organizations with actual benefits taking effect beginning June 1. Since Medicare beneficiaries can purchase only one prescription drug discount card until January 2006, California seniors will want to study each card's features carefully.

Before buying a drug discount card, California consumers should find out if the card is approved by Medicare and will cover drugs actually being taken by the consumer. Consumers also will want to determine how much they would likely save since the card may not be right for all consumers - such as middle-income seniors in health maintenance organizations (HMOs) or low-income consumers in the Medi-Cal program who already receive drug price discounts.

Drug discount cards may provide buyers with savings of 10 percent to 25 percent off retail prescription drug prices with annual fees of up to $30. According to Medicare, only cards that meet certain standards, such as providing a range of different categories of discounted drugs, access to local pharmacies, and regular price comparisons for discounted drugs are being approved. The Medicare web site provides a drug benefit calculator and additional information on approved drug discount cards.

To determine likely savings, calculate how much would be spent each month on each drug used, then compare the price with how much would be paid with the drug discount card. Medicare is working on a new web feature allowing on-line comparisons of drug discount prices.

Lockyer warned consumers that deceptive sales practices, including phony telephone solicitations, have already occurred in other states. Seniors should be careful about buying cards from non-Medicare-approved companies and about giving out personal identification information. The Attorney General emphasized that consumers should never provide solicitors their bank account numbers or passwords.

Deceptive or unfair practices by discount drug card sellers should be reported to the Attorney General Office. Complaints can be filed using the on-line complaint form or by writing to the Attorney General's Public Inquiry Unit, P.O. Box 944255, Sacramento, CA 94244-2550.

Medicare has approved drug discount cards from: Aetna Health Management LLC; Caremark Advantage, Inc.; Catalyst Rx; Medco Health Solutions Inc.; PMB Plus Inc.; PharmaCare Management Services Inc.; Pharmacy Care Alliance Inc.; Scrip Solutions LLC; SXC Health Solutions Inc.; United Healthcare Insurance Co. (with AARP); WellPoint Pharmacy Management; Express Scripts Inc.; Argus Health Systems Inc.; Computer Sciences Corp.; WHP Health Initiatives Inc.; AdvancePCS Health LP; First Health Services Corp.; and Long Term Care Pharmacy Alliance LLC.