I just realized, even the cost of generic drugs, which can be purchased for less than the insurance copay, were still being credited, by the Prescription Part D insurer, towards the amount spent on drugs for the year, helping to fulfill the initial drug cost requirement ($2700 for 2009), after which you enter the “donut hole”. This is despite the fact the insurer pays nothing out of pocket, nor ever will, for those drugs. (At least that’s the way it works for the AARP Prescription Drug plan through United Health.)

So in other words, you would be better off purchasing the generic drugs on your own, through a WalMart, Costco, or Target, and not use your Prescription Part D insurance, and then using a different one of the pharmacy’s for your non generic drugs.

In my case, or in the case of my aunt, had she done that (in addition to not using Rite Aid), she would have saved about $700 last year.

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Several months ago I wrote about how American Express was unwilling to credit me the $45 annual membership fee on my Starwood Preferred Guest American Express card, knowing they would lose over $500 in merchant generated fees a year from me using that card.

Eventually I did get the credit (plus an extra $50 for my troubles), but it took canceling the card, to finally catch the attention of someone at American Express who realized losing $500 per year wasn’t worth gaining a measly $45 annual membership fee.

Now just recently I experience a very similar problem with my cable internet provider (Charter Communications).

When Charter wanted to raise my monthly fee to $69.98 per month, I balked, and got them to agree to a charge equivalent to Verizon FIOS service + $2 more ($44.98/month). I agreed to the extra $2 per month, because service was good, and it was worth $2 per month not having to switch providers.

But the next month I received a bill for $47.64. Apparently because I didn’t call them the instant my bill was increased, I was charged the $69.98 rate for the 3 or so days I was late calling.

Now that wasn’t what I had agreed to. I wasn’t willing to pay $69.98 per month for any length of time, but no matter how hard I tried, and I talked to 3 different people, no one would budge. I had to pay that extra $2.66, and there was no one in the company who could change that. That was policy, period. The customer service people wouldn’t even let me talk to anyone else, i.e supervisor etc.

In other words, they were willing to piss off a customer, and risk losing over $500 per year, in order to squeeze a mere $2.66 out of me.

Yes I realize $2.66 is not a lot of money, and I could easily afford it, but it was the principle involved. It wasn’t what I agreed to, and I wasn’t going to pay it. My principles are very important.

Eventually I did get the credit, plus a little extra for my hassles. I knew all along I would get the credit, because I have a friend who works for Charter. I just didn’t want to hassle him for such a measly item, and something that should have been taken care of at a much lower level.

But what about those who don’t have friends in such positions? Is business so great for Charter Communications they can risk alienating customers, and losing business?

It just continues to boggle my mind, when you consider how much competition there is in the credit card, and broadband communication businesses, that any business would try and alienate their customers, by implementing such inflexible policies.

Don’t they know without happy customers they don’t have a business?

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I just received a telephone call from a Miss Potter (no relation to Harry) at American Express (AMEX), concerning the cancellation of my Starwood Preferred Guest credit card, after numerous attempts to get a $45 good will credit for the annual membership fee failed.

It appears there is at least one person at AMEX, still versed in the now almost lost art of mathematics, who realized, losing a customer, who generates well over $500 annually in merchant fees, by trying to squeeze an additional $45 out of that customer, was not good business.

She’s over nighting my new cards to me today, and even gave me her direct telephone line, in case I encounter a similar problem in the future.

My faith in American business [at least my faith in American Express] has been restored.

Uhm! I wonder if maybe she read my blog. :)

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As if my experience with American Express wasn’t bad enough, now I can’t believe Verizon is just as intransigent.

Lately I’ve been having problems with my wireless connection. It seems anytime I get more than 10 feet away from the router, my internet connection fades out, and connectivity is hit or miss. Mostly miss.

So I contact Verizon, and discover my wireless connection is only guaranteed for 10 feet or line of sight from the router.

THAT’S RIDICULOUS!

What’s the point of having a wireless connection, if you can’t get a connection anywhere in the house. Besides this has only been a problem for the past one or two months. I never had a problem connecting before. Incidentally this is on 3 different computers (including a brand new MAC), so I know it’s not a computer problem.

So anywaze, I contact Verizon, and I also discovered that the router is only warranted for one year.

SAY WHAT?

I never bought the router in the first place. It was included with the installation, which was free. But if I want another one, because this one is bad, it will cost $139 + tax.

What’s even more amazing is, I’m only 5 days past the warranty. So you would think Verizon would cut me some slack, and send out a new one at no charge, just to be nice guys, but noooooooooo, that is not the case.

I could cancel the service, and then sign up again, and they’ll install new service, including a new router, for no charge, costing them money and time. So why not just send me a new router, rather than piss off a valued customer.

That just was not to be. No amount of cajoling, begging, or even threatening to discontinue service would change anyone’s mind (and I talked to 4 different people).

So I just got off the phone with Charter Cable, and they are coming to install my new cable internet service tomorrow. How’s that for service?

And it’s half the price of my Verizon FIOS for the first six months, with no minimum time commitment. So after 6 months if I’m not happy with Charter, I’ll just switch back to Verizon.

I guess I’ll just never understand big business.

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It didn’t even take 5 days, for me to receive my first offer for a new American Express (AMEX) Starwood Preferred Guest credit card, since canceling the identical card Monday, because AMEX refused to give me a good will credit for the annual fee.

And not only is there no annual fee for the first year with this offer, they’re even going to give me 10,000 bonus points for signing up.

I only wish someone would explain to me why AMEX would do this? The logic certainly escapes me, but then again I’m only a metallurgical engineer, and not trained in the world of high finance.

I actually almost took the bait, but then I figured, why bother? Besides I’m sure I’ll get another offer in the mail again shortly.

Maybe they’ll even up the ante the next time. :)

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American Express (AMEX) won’t!

For the last 13 years, Edie and I have used an AMEX Starwood Preferred Guest credit card for the bulk of the credit card purchases we make, having charged a minimum of $25,000 per year over that time, and within the last two years charging in excess of $48,000 per year. (In case you were wondering, we literally charge everything.)

When I first signed on for the card in 1995, there were no annual membership fees, but that changed around the 3rd or 4th year, when AMEX started charging an annual fee.

I have never been a fan of paying to use a credit card, especially since the credit card company receives a fee (approximately 1% to 2% of the charges) from the merchant every time I use that card, and have always refused to pay any such fees.

So every year, when the annual membership fee appeared on my statement, I always called AMEX customer service, and they have always given me a “good will credit” for the fee. That is up until now.

This time when I called customer service, and subsequently even emailed them, they refused to grant me that same “good will credit” they have granted me every year since implementing the annual fee.

So I was hoping some astute businessman, MBA graduate [oh wait, I have an MBA], or at least someone with more business savvy than me, can explain the logic in fore going at least $400/year [and likely a LOT more] in merchant fees, to try and squeeze an extra $45/year out of me, just for the privilege of carrying the card, especially since now AMEX will get neither the merchant fees, from my purchases, nor my annual membership fee?

Do they think their credit card is the next best thing to sliced bread and Google? Do they think they have no competitors? Or maybe I’m living in an alternative universe, where up is down, and to make money you have to lose it.

Admittedly I did like the benefits received from the use of the AMEX Starwood Preferred Guest credit card, but I refuse to compromise on my principles.

Besides, I know I will soon be receiving an application in the mail to sign up for that same card, which will include bonus points and waive the membership fee for the first year. I know this because I’ve shredded many of those applications in the past.

I may just reapply the next time I receive one.

In the mean time, I canceled the AMEX card, and am now using my Citibank and Capital One cards almost exclusively.

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