Three Medicare Scams to Watch For
Medicare open enrollment runs October 15 through December 7, and if you are eligible for Medicare, you’ve probably started receiving calls from insurance agents trying to get you to switch. Criminals also know this is the one stretch of the year when a call about your Medicare plan can sound legitimate.
Here are a few of the scams I’ve heard about directly from clients or other advisors.
1. The new Medicare card
After a federal case charging more than 300 people with Medicare and Medicaid fraud, over a million beneficiaries were mailed new legitimate cards.
The scam version is a call or a letter saying your replacement card is ready, and they just need to verify your Social Security number first. A newer variation arrives as a plastic chip card with a phone number to call to activate it. Medicare does not issue plastic cards and has never charged for one.
2. The fake insurance agent
Licensed insurance agents can't call you about a Medicare plan unless you gave them permission first. That rule is more useful than it sounds, because an unsolicited call about your coverage is either a rule-breaking agent or someone who is not an agent at all.
Voice-cloning tools have made these calls harder to identify. The caller sounds relaxed and well-informed, knows your name and your county, and may reference your current plan. They want your Medicare number, which can give them the information they need to enroll you in plans or file claims without your knowledge.
3. Free things that are not free
Genetic testing kits, back and knee braces, diabetic supplies, discounted vaccines, a COVID test shipment nobody ordered. The pitch is that Medicare covers it in full and all they need is your number to process it. When this happens, Medicare gets billed, often for thousands of dollars, for equipment you did not need and may never receive. And if Medicare has already paid for a knee brace in your name, coverage for the one you actually need later can get denied as a duplicate.
You should treat your Medicare number like your Social Security number, only providing it to trusted contacts or people you have done established business with.
Happy Planning,
Alex
This blog post is not advice. Please read disclaimers.