Scam Alerts
RX For Medicare Discount Fraud
Medicare’s new prescription drug program is
getting underway. Insurance companies and private drug companies
are working closely with Medicare to offer seniors coverage for
their prescription drugs.
But ruthless swindlers also will try to bilk seniors as they begin
enrolling in the new benefit program, which begins January 1, 2006.
Fighting scams is like fighting any disease: Seniors should arm
themselves with doses of caution and alertness as they weigh their
choices of Medicare discount plans.
The scams
Crooks posing as representatives of Medicare or private prescription plans may offer to “explain” the new coverage to seniors, and “help” seniors sign up. They may fraudulently….
- … request your sensitive personal financial
information such as Social Security, Medicare, credit card and
checking account numbers. Truth: Crooks
can use this information to steal your identity and charge large
purchases in your name -- without your permission. Real Medicare
drug plans won’t request this information.
- …approach you door to door. Truth:
Medicare forbids such tactics unless you invite the marketer into
your home.
- …ask you to enroll or pay signup fees over
the phone. Truth: Medicare doesn’t
permit phone payments. Approved plans can only do general marketing
via telephone, and they can enroll you over the phone ONLY if
you make the call. Marketers also can make appointments to visit
your home to discuss their discount plans. Medicare-approved plans
also must comply with federal and state “Do Not Call”
laws.
- …ask you to pay signup fees via a website.
Truth: Medicare doesn’t permit
online payment. Plans must send you a bill if you sign up online.
- …illegally market drug plans before October
1, 2005. Truth: Marketing can’t
begin until October 1.
- …try to illegally enroll you before November
15, 2005. Truth: Enrollment can’t
begin until November 15.
- …insist you’re required to sign up
for the drug coverage or else you’ll lose Medicare benefits.
Truth: Signup is strictly voluntary.
You’ll keep your Medicare benefits whether or not you sign
up.
- …say they’re “official”
Medicare representatives, or present “official” Medicare
marketing material advertising the new drug coverage. Truth:
Medicare employees don’t personally market a drug plan,
recommend specific drug plans, or offer government marketing literature.
Only private companies market their own Medicare-approved drug
plans. They also use their own material; Medicare doesn’t
have any. You will receive the Medicare & You handbook
from Medicare beginning in October. The handbook provides general
information about Medicare and the new drug coverage.
The price you pay
Your sensitive financial information could be stolen. Crooks could make large and unwanted charges against your accounts. Thefts could cost you thousands of dollars, even your life savings.
Fight back
- Never give unknown strangers your Social Security,
Medicare, health-insurance or bank-account numbers, or other personal
financial information.
- Verify a plan is Medicare-approved before you
sign up. Call tollfree 1-800-633-4227.
- Report suspected swindles to the Inspector General’s
tollfree hotline: 1-800-447-8477.
- Visit www.medicare.gov
for general information about the discount program.
