Attorney General Tom Reilly filed suit against an out-of-state company for allegedly using deceptive marketing tactics to lure senior citizens and other Medicare beneficiaries into believing that they were signing up for Medicare-approved prescription drug discount cards.
Named in AG Reilly’s suit, filed today in Suffolk Superior Court, is Peoples Benefit Services Inc. of Pennsylvania, which offers prescription drug discount cards under the names « Senior Security Benefit Plan » and « Senior Rx Discount ; Plan, » among others.
Today’s lawsuit alleges that, starting in 2003, the company ; used unfair and deceptive practices such as government-like logos, phrases and terms on TV commercials and in mailings to market its « Senior Security » prescription discount card. The company tried to make « Senior Security » look like one of the Medicare -approved prescription discount cards being offered at the time. The suit also alleges that Peoples Benefit Services may now be marketing « Senior Rx » using similar practices just as Medicare beneficiaries are about to enter the enrollment period for the new Medicare Part D prescription drug insurance program and are receiving advertisements from federally-approved insurance plans.
« Many of our seniors are literally being forced to choose between putting food on the table and paying for their prescriptions, » AG Reilly said. « There is a lot of confusion about this new Medicare drug program, and we will not let companies come in and deceive people into purchasing something that leaves them without the full coverage they are entitled to. »
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AG Reilly is seeking an injunction to stop Peoples Benefit Services from offering discount cards, as well as requiring it to pay civil penalties and restitution to people who signed up for the discount card programs.
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As the November 15 enrollment period for Medicare Part D approaches, AG Reilly offers the following information for seniors and other Medicare beneficiaries:
Important Dates related to Medicare Part D.
November 15, 2005 – This is the first day that seniors can enroll in a Medicare prescription drug plan.
January 1, 2006 – This is the first day that coverage begins for seniors who signed up for the Medicare Part D benefit.
May 15, 2006 – This is the last day that you can enroll for the benefit without paying a penalty.
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AG Reilly also launched a new series of web pages that help senior citizens, their families, and professionals better recognize and report cases of elder abuse as well as locate elder resources in their communities. ;
As part of AG Reilly’s Elder Abuse Project, the pages will appear on AG Reilly’s official website (www.ago.state.ma.us) under the « Elders/ Elders Abuse Project » heading. This new portion of the website is designed for members of law enforcement, social services agencies, and others working to prevent or respond to elder abuse.
AAG Judith Whiting of AG Reilly’s Consumer Protection and Antitrust Division is handling the Peoples Benefits case.
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