Con artists and scammers are constantly inventing new ways to take advantage of people. Unfortunately, older individuals tend to be more trusting of strangers and less aware of the newest ploys these dishonest people use, making seniors a common target. So, it only makes sense that an occurrence like the annual Medicare Open Enrollment period would offer the perfect opportunity to dupe unsuspecting elders into sharing their sensitive personal and financial information.
Below are some common tactics that scammers use on Medicare beneficiaries around the open enrollment period each year. This information will help you avoid becoming a victim of identity theft and/or fraud and allow you to warn others about these schemes.
Scam 1: Bogus Medicare Representatives
This tactic involves an “official Medicare agent” either cold-calling a senior or knocking on their door. The phony agent says they’re selling Medicare insurance that can save the senior thousands of dollars in healthcare costs next year, but the offer is only good during the open enrollment period. Sounds tempting, right?
The fact is that the Centers for Medicare and Medicaid Services (CMS) does not employ any Medicare sales representatives, and CMS typically issues all communications in writing. CMS is only authorized to call beneficiaries in two situations:
- A Medicare health or drug plan can call you if you’re already a member of the plan. The agent who helped you join can also call you.
- A customer service representative from 1-800-MEDICARE can call you if you’ve called and left a message or a representative said that someone would call you back.
Ignore cold calls and be wary of anyone who shows up unannounced at your home offering products or services of any kind. If you haven’t asked for an agent to contact you, federal law prohibits an insurance agent from trying to sell to you, whether it’s via a phone call, an e-mail or a knock on your front door. If an “agent” tries to sell you something on behalf of Medicare, you should report that person to the authorities immediately.
Scam 2: Threatening a Loss of Coverage
This scam usually begins with a senior receiving a call that says they must have a prescription drug coverage plan (also known as Medicare Part D) or they will lose their other Medicare benefits. If the senior doesn’t purchase a plan during enrollment time, then their Medicare benefits will be terminated. Of course, this caller claims to offer just the right Rx plan for the senior to increase their coverage and safeguard their benefits.
Sound a little too good to be true? That’s because it is. If someone says you must join a plan or buy some sort of coverage to avoid losing your other Medicare benefits, it’s a scam. The Medicare prescription drug benefit is entirely optional coverage that supplements your other Medicare benefits.
Scam 3: Fake Rebate Notices
In this scenario, a scammer calls a Medicare beneficiary to notify them that they are owed a $250 refund because they’ve reached the prescription drug coverage gap known as the “donut hole.” Of course, the catch is that the senior must provide their birth date, Social Security number, bank account and Medicare numbers so the refund can be automatically deposited into their checking account.
The important takeaway here is that Medicare will NEVER call and ask for a beneficiary’s Medicare or Social Security number. Guard your personal information. Treat Medicare, Medicaid and Social Security numbers like a credit card number, and never give these out to a stranger. If someone claims to be with Medicare and asks for sensitive information like this over the phone, hang up and report it to 1-800-MEDICARE.
Scam 4: Counterfeit Sales Materials
Scammers sometimes create and circulate very official-looking brochures and sales materials for new Medicare products that are available at a “discounted price” during the open enrollment period. They then count on seniors to contact them about enrolling and collect their personal information, payment information or both.
Don’t be fooled by sales materials that look like they’re from a government agency. Private insurance companies like Cigna, Kaiser Permanente, Aetna, Humana, UnitedHealthcare and Blue Cross Blue Shield sell Medicare Advantage Plans (Part C), Medicare Supplement Plans (also called Medigap) and Medicare Prescription Drug Plans. CMS approves and standardizes these plans, but they do not directly promote or sell any of these options.
Be skeptical of promotional materials claiming to come from the government. If you’re not sure if the materials you’ve received are legitimate, you can access a full list of the kinds of notifications and information that CMS and your existing plan(s) may send out via mail on the Medicare.gov website.
If you receive any mail or digital communication about Medicare products that you are interested in acting on, do not use the contact information listed on these materials. Instead, call Medicare directly at 1-800-MEDICARE (1-800-633-4227) or look up and compare available plans in your area at Medicare.gov. Going through CMS directly is the safest way to explore your options and make changes to your coverage.