Drug Discount Card Settlement
HARRISBURG - Attorney General Tom Corbett today announced that the Attorney General's Health Care Section has reached a $230,000 consumer settlement with a Chester County company accused of misleading older consumers by falsely implying that its discount drug cards and other products were government-endorsed insurance plans that offered "members" significant savings on prescription drugs or medical treatment.
The consent judgment, filed in Commonwealth Court, requires Frazer-based Peoples Benefit Services Inc. to pay restitution to consumers who file valid refund claims with the Attorney General's Health Care Section by March 24th. The judgment also includes civil penalties and investigative costs, which will be used to support future public protection programs and investigations by the Attorney General's Office.
Corbett said the agreement resolves complaints that were raised in a 2005 lawsuit against Peoples Benefit Services, which was accused of using misleading advertising to convince consumers that its products were affiliated with government-approved Medicare Part D Prescription Drug Plans. The company advertised its prescription drug discount card through statewide telemarketing activities, TV ads and direct mail pieces and telemarketing calls to Pennsylvania residents, charging $5.95 to $12.95 per month for the service.
Corbett said the consumer settlement requires Peoples Benefit Services to take a series of steps to avoid any confusion in future promotions, including:
Substantiate any claims about savings for consumers.
Clearly disclose all costs and fees.
Provide a list of pharmacies and medical providers who participate in the program.
Halt the use of any symbols, logos, wording or other references that give the impression of a government affiliated program.
Halt the use of insurance industry terms to advertise products that are not insurance.
Register as a telemarketing in Pennsylvania and comply with the Do Not Call law.
Register any fictitious business names with the PA Department of State.
Corbett said consumers who purchased drug discount cards from Peoples Benefit Services and wish to apply for a refund should contact the Attorney General's Health Care Section at 1-877-888-4877 to obtain a complaint form. Electronic complaint forms are also available on the Attorney General's website, at www.attorneygeneral.gov (Highlight the "Complaints" button on the front page of the website and select "Health Care Complaints" from the menu that appears).
All consumer claims must be filed with the Attorney General's Health Care Section by March 24, 2009.
Corbett said the consent judgment was filed in Commonwealth Court by Chief Deputy Attorney General Thomas M. Devlin and Deputy Attorney General Timothy E. Gates of the Attorney General's Health Care Section.
The consent judgment, filed in Commonwealth Court, requires Frazer-based Peoples Benefit Services Inc. to pay restitution to consumers who file valid refund claims with the Attorney General's Health Care Section by March 24th. The judgment also includes civil penalties and investigative costs, which will be used to support future public protection programs and investigations by the Attorney General's Office.
Corbett said the agreement resolves complaints that were raised in a 2005 lawsuit against Peoples Benefit Services, which was accused of using misleading advertising to convince consumers that its products were affiliated with government-approved Medicare Part D Prescription Drug Plans. The company advertised its prescription drug discount card through statewide telemarketing activities, TV ads and direct mail pieces and telemarketing calls to Pennsylvania residents, charging $5.95 to $12.95 per month for the service.
Corbett said the consumer settlement requires Peoples Benefit Services to take a series of steps to avoid any confusion in future promotions, including:
Substantiate any claims about savings for consumers.
Clearly disclose all costs and fees.
Provide a list of pharmacies and medical providers who participate in the program.
Halt the use of any symbols, logos, wording or other references that give the impression of a government affiliated program.
Halt the use of insurance industry terms to advertise products that are not insurance.
Register as a telemarketing in Pennsylvania and comply with the Do Not Call law.
Register any fictitious business names with the PA Department of State.
Corbett said consumers who purchased drug discount cards from Peoples Benefit Services and wish to apply for a refund should contact the Attorney General's Health Care Section at 1-877-888-4877 to obtain a complaint form. Electronic complaint forms are also available on the Attorney General's website, at www.attorneygeneral.gov (Highlight the "Complaints" button on the front page of the website and select "Health Care Complaints" from the menu that appears).
All consumer claims must be filed with the Attorney General's Health Care Section by March 24, 2009.
Corbett said the consent judgment was filed in Commonwealth Court by Chief Deputy Attorney General Thomas M. Devlin and Deputy Attorney General Timothy E. Gates of the Attorney General's Health Care Section.
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