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Contract Terms to Look For

Before signing up with a medical alert service provider, consumers should look carefully at the contract so they know what they are signing.  Here are a few tips on what to look out for:

• Can you cancel at any time?  Is that in writing?  Many consumers complain about unwittingly signing up for long-term contracts that they later regret.

Because Phillips Lifeline is sold through health care providers, the contract will be with the provider, not Phillips. This sample contract with Methodist Hospital of Omaha, Nebraska is from February 2007. We found the contract easy to read (note the normal-sized type), and nothing in it was unusual or unreasonable. Some of the key points:

• the contract can be terminated at any time
• the monthly price may be increased after 60 days' notice
• the equipment is rented, and there could be a hefty charge if it is not returned

This sample Life Alert contract is from August 2008.  It contains several unusual and surprising provisions:

• 36-month contract
• terminating the contract after 36 months requires 6 months written notice
• the contract is also terminated on death, and can be terminated if the user provides proof from an "accredited heath or social service organization" that they have relocated to a skilled nursing facility or are receiving "24-hour in home professional care."
• the contract advises on the reverse side that the customer will not be able to use the telephone line once the system is activated, and will be responsible for any costs incurred to install a separate line.

This is a sample Rescue Alert contract, downloaded in February 2008 from the Rescue Alert Web site. Nothing in it seems particularly unusual or surprising, but there is an important warning about using Rescue Alert in multi-line homes.

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Personal Emergency Response Systems (PERS), also known as Medical Emergency Response Systems, let you call for help in an emergency by pushing a button. A PERS has three components: a small radio transmitter, a console connected to your telephone, and an emergency response center that monitors calls.