Avoiding Medicare Scams

October brings out trick-or-treaters for Halloween, but also for Medicare Annual Enrollment Period. While finding the right healthcare plan can be a bit of a treat, you need to be on the lookout during this season for those hoping to trick you. Here we’ll guide you in avoiding Medicare scams.

Every year scammers utilize the annual enrollment season to take advantage of senior citizens that are shopping for healthcare coverage. Seniors are considered a vulnerable population as they are among one of the most reportedly scammed groups of people in the U.S. While there are various scams that target the elderly – investment, timeshare, and reverse mortgage scams – Medicare scams are at the top of the list. A recent study found that a total of $60 billion was scammed from Medicare last year alone!

Enrollment, especially for first time recipients, can be confusing. So be sure to do your research and act cautiously to avoid being swindled out of your money or even have your identity stolen. Let’s get into a few examples of the scams we’re talking about and how to avoid them.

Avoiding Medicare Scams From Unsolicited Phone Calls, Emails, and Visits from Medicare Representatives

Federal law states that Medicare representatives cannot send unsolicited emails, phone calls, or show up on the doorstep of a Medicare recipient and ask for private information. Anyone trying to contact you claiming that they are a Medicare Representative from a Medicare Service Center is a red flag and your best bet is to hang up. If Medicare needs to get in touch with you, they will typically send an official letter from the government requesting that you contact them.

1. New Cards for Benefits

Fraudsters may call claiming that you need a new card for the following year in order for you to continue receiving benefits. This lie is just a way for them to ask for your Medicare Identification Number. Many who have not kept up-to-date on the annual changes in Medicare, may find themselves a victim to this trap. In previous years, one’s social security number was used as their Medicare Identification number. Only in 2015, did Medicare decide to issue Medicare ID numbers that are different from one’s SSN; however, this will take at least 5 years to complete the transition for all current and new Medicare recipients.

2. Mandatory Prescription Plan

A Medicare representative imposter may tell you that you must purchase a separate coverage plan for prescription drugs during the enrollment period in order to receive benefits. They may try pressuring you into purchasing a plan over the phone, asking for your credit card information and Medicare Number. However, while Medicare does provide Prescription Drugs plans (https://www.medicare.gov/part-d/), they are not mandatory to purchase.

3. Refunds

This one can be an easy trap, especially if someone knows that they are deserving of a refund. A scammer will get you excited about how much of a refund you can get back through a direct deposit. However, even if you are expecting a refund, you would be directly issued a check through the mail, as opposed to a “Medicare Representative” requesting for your bank information via phone call.

4. Free Stuff

Perhaps you were invited to a free lunch seminar or free medical check-up at a clinic. The scammers’ goals are typically 1) to get you to come in person so they can sell you on medical supplies and request for your credit card information and/or 2) to obtain all your medical information in exchange for a free check-up. While there are moving clinics that may offer a free check-up, it is crucial that you investigate what organization is hosting the check-ups. Our Medicare system is complex and – considering changes and adjustments that occur every year – it’s no wonder that fraudsters see this as an opportunity to trick people out of their money. So, as you make your way through Medicare enrollment, be cautious of who you give your information to and always look into anything that sounds suspicious. If you have any questions or concerns regarding avoiding Medicare enrollment scams or fraudulent activities, please feel free to reach out to one of our agents by contacting us below.

5. Bad Practices

It seems it happens almost all year round now that people are often getting letters and calls from random people claiming they need to make a change on their medicare or that there are new benefits they are missing. Many of these letters look like official letters from Social Security or Medicare. Since these are generally Medicare brokers doing unsolicited marketing they are not technically scams. Changing your Medicare plan isn’t illegal, but the manner in which they do it is noncompliant and unethical under the Medicare guidelines. All brokers are supposed to follow certain rules like:

• Calling someone only when you’ve gotten their permission verbally or in writing (an internet form counts). 
• Confirming all doctors and medications before enrolling to make sure no issues arise that interrupt patient medical care. 
• Not lying about changes or telling Medicare beneficiaries they have to change. 

All of these rules are generally broken by these practices. If they change you or you feel they will not leave you alone you can file a grievance with Medicare. It’s the only way Medicare learns about who is doing these practices. A grievance forces Medicare to look into the names and numbers that are contacting you, and allows them to take action to ensure these practices do not continue. If you do have questions on if there are any changes to Medicare in your area we recommend you contact your broker. If you do not have one you can find a Local Medicare Agent near you by clicking HERE. 

New scams and tricks are always being created. Be cautious and questioning of who is contacting you and what they are attempting to do with you. If you are ever uncertain if something is a scam you can contact us below and we will be happy to help you identify what it is and help you to keep avoiding Medicare scams.