Medicare Part D-related Scams & Alerts
The Medicare Part D prescription drug program has created opportunities for many seniors and people with disabilities, but along with the benefits, the program has also inspired dishonest individuals to take advantage of people with Medicare. As companies market their Medicare Part D prescription drug plans, some people may be contacted by telephone or by mail. Others may be visited by salespeople claiming to be representatives from Medicare or Social Security. The following information offers ways you can protect yourself from scams and con artists operating under the guise of Medicare Part D.
People should guard their Medicare number as closely as they would their credit card information, and never give out any personal information to anyone who comes to their home or calls them uninvited.
Check here often for the most recent scams related to the marketing of Medicare Part D prescription drug plans.
"$299 Ring" targets seniors and people with disabilities
How do I identify a possible scam?
How do I protect myself from a scam?
How do I report a scam?
How do I report “do-not-call” violations?
Original Medicare vs. Medicare Advantage
"$299 Ring" targets seniors and people with disabilities
Medicare officials are warning seniors and people with disabilities to be on the lookout for a new scheme being played off the new Medicare Part D prescription drug program. In the scheme, those shopping for a Medicare prescription drug plan are asked to withdraw $299 from their checking account to pay for a Medicare prescription drug plan that does not exist.
Complaints about the "$299 Ring" have come from Indiana, Michigan, Pennsylvania, Massachusetts, New Jersey and Georgia but Medicare officials warn the companies responsible are based outside the U.S. and the scheme could spread to any state. Consumers can report cases to their local law enforcement agencies or 1-877-7SAFERX (1-877-772-3379).
No Medicare drug plan can ask a person with Medicare for bank account numbers or other personal information over the telephone. You should never provide that kind of information to a caller. You should contact your local police department if you believe someone is trying to take money or information from you illegally.
Back to top
How do I identify a possible scam?
Unlike traditional Medicare, drug coverage through Medicare Part D is delivered by private health care companies offering prescription drug plans. A company must get the federal government's approval before offering a Medicare Part D prescription drug plan to the public. “Medicare Approved” prescription drug plan providers:
- Cannot charge a fee to enroll a person in a plan.
- Cannot come to a person’s home uninvited to sell or endorse any Medicare-related product.
- Cannot call you if your phone number is on the national Do-Not-Call registry.
- Cannot enroll a person into a drug plan over the phone unless the person called the plan, or unless the person is adding prescription drug coverage to a Medicare Advantage Plan or another Medicare plan they already have.
- Cannot ask for payment over the phone or the Web. The plan must send a bill. People can arrange to pay their plan premiums through a monthly withdrawal from their Social Security check or a bank account, but they must call their plan or respond to a mailed payment request from the plan to do this.
- Cannot request your identification numbers, social security numbers or bank and credit card account numbers over the phone.
- Cannot say that their product is “endorsed by Medicare.” The proper term is “Medicare-approved.”
- Cannot say they are “calling on behalf of Medicare” or “calling for Medicare.” The phrase “contracted with Medicare” is allowed.
- Cannot offer you free gifts and prize drawings as a condition of enrollment. Gifts or drawings must make clear that there is no obligation to enroll.
- Cannot send a person unwanted emails.
Back to top
How do I protect myself from a scam?
You should be suspicious of anyone who tries to sell you a prescription drug plan over the phone. Some of the scams are very sophisticated. Follow these 10 simple steps to protect yourself from a scam related to Medicare Part D:
- Protect your personal information when talking to people about Medicare Part D prescription drug plans. Never provide your Medicare and/or Social Security number, never disclose your credit card numbers, bank records, insurance documents, pensions or annuities. There is never a sign-up fee for enrolling in a plan and you will be billed for any monthly premiums charged by the plan you choose.
- Get yourself listed on the federal do-not-call lists by calling toll-free, 1-888-382-1222 or go to their website: https://www.donotcall.gov/default.aspx.. These listings are free. There is no cost for being listed. Do not fall for a scam that charges you a fee to get on these do-not-call lists.
- Never allow anyone, except appropriate medical professionals, to review your medical records or to recommend services for you.
- Avoid a provider who tells you that the item or service isn't usually covered, but they know how to bill Medicare/Medicaid to get it paid.
- Never accept “free” drug samples, medical supplies or equipment from a telephone solicitor, door-to-door sales rep, or from a TV or magazine ad.
- Be sure to choose your “Medicare-approved” prescription drug plan carefully.
- Beware of providers who represent themselves as being part of, or endorsed by the federal government, Medicare, or Medicaid. You'll want to make sure the Medicare Part D plan you enroll in is "official." Prescription drug plans approved by Medicare will carry this logo:
- Keep a record – use a calendar or notebook, for instance – to log your medical appointments, tests, supplies, and all prescription medications.
- Review your prescription drug plan billing statements to determine that only services, supplies, and prescription medications that were received are billed.
- If you think someone is misusing your personal information, call one of the following:
- 1-800-MEDICARE (1-800-6334227) – TTY users can call (1-877-486-2048)
- Fraud Hotline of the HHS Office of the Inspector General at 1-800-447-8477
- Federal Trade Commission's ID Theft Hotline at 1-877-438-4338 – (TTY users can call 1-866-653-4261)
Back to top
How do I report a scam?
If you suspect a scam, call:
- Medicare Prescription Drug Fraud, Waste and Abuse Hotline at 1-877-7SAFERX (1-877-772-3379).
- Better Business Bureau Education Foundation at 1-877-468-9222 or 1-713-341-6184.
- Fraud Hotline of the HHS Office of the Inspector General at 1-800-447-8477.
- Federal Trade Commission ID Theft hotline at 1-877-438-4338; TTY users call 1-866-653-4261.
Please have the following information ready:
- The date and time you received the call and how long it lasted;
- The name or identification used by the caller;
- If you contacted a salesperson about Medicare Part D before receiving the suspicious call, the name, number or address contacted;
- The information that the caller requested; and
- The telephone number of the suspicious caller (through caller ID).
Back to top
How do I report “do-not-call” violations?
If you have registered your phone number with either the state or federal do-no-call lists and you still receive phone calls about Medicare Part D prescription drug plans, you may want to file a complaint with the appropriate authorities. By reporting the no-call violation, you may deter future calls. Reporting also helps document a pattern of violations so that the callers can be held accountable.
To report violations of the federal do-not-call list, call toll-free 1-888-382-1222 (for TTY, call 1-866-290-4236) or online at https://telemarketing.donotcall.gov/.
Back to top
Original Medicare vs. Medicare Advantage
It's important to be aware of the difference between the Original Medicare Plan and Medicare Advantage Plans when shopping for a Medicare Part D prescription drug plan. Original Medicare Plans are traditional fee-for-service plans that allow you to go to any doctor or hospital that accepts Medicare. Stand-alone Medicare Part D prescription drug plans will be a benefit for those in the Original Medicare Plan.
Medicare Advantage Plans include health maintenance organizations (HMOs) and Preferred Provider Organizations (PPOs). These plans deliver all Medicare-covered health care, including prescription drug coverage. In many cases, they may cover more services and lower out-of-pocket costs than the Original Medicare Plan. However, since services in these plans are only offered by providers in a limited network, you may only be able to see certain doctors or go to certain hospitals. These Medicare Advantage Plans are only offered in certain parts of Texas.
It's important to know that if you enroll in a prescription drug plan offered by a Medicare Advantage Plan, you are enrolling in the Medicare Advantage plan itself. All your health care needs, including prescription drug coverage, would be served by the Medicare Advantage Plan.
Back to top
