How to Spot Scams
No doubt about it. The new Medicare drug benefit is confusing. And with confusion comes an opportunity for fraud. The government is already investigating alleged scams. As beneficiaries sort through the promotional brochures and marketing materials explaining the new plans, they should be on guard for con artists.
Private insurers may call you to market their plans (unless you're on the federal "do not call" list), but they cannot sign you up unless you initiate the call. The government itself isn't pitching plans, so hang up on anyone claiming to be from Medicare and trying to sell you something.
Give the same cold shoulder to anyone who demands personal information such as a Social Security or credit card number in order to learn about a plan. Anyone who wants payment before November 15, when enrollment begins, is also not legit. Suspicious seniors can ask to be sent written materials to review later.
Consumers should be especially cautious about inviting marketers to their homes. It's a good idea to have a family member or advocate with you during the visit. Otherwise, "the next thing you know, the candlesticks are gone," says Amy Bernstein, coordinator of the Health Insurance Information, Counseling, and Assistance Program in New York City. To make sure a specific plan is above board, contact Medicare (800-MEDICARE, or 800-633-4227). Report potential scams to your state department of insurance or the State Health Insurance Assistance Program.
This story appears in the November 7, 2005 print edition of U.S. News & World Report.
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