Medicare Fake News: Fishing Out the Scammers
October 31, 2019
The open enrollment period for Medicare is now upon us; it extends from October 15 to December 7. This means that scammers—those who are trying to commit fraud or engage in illegal sales tactics are busy at work. Don’t fall prey to their methods! The best defense is to know what’s NOT allowed when it comes to selling Medicare Advantage plans, prescription drug plans (Part D), and Medicare supplement insurance plans.
Refuse Phone Calls and Ignore Messages
Unsolicited Medicare-related phone calls are prohibited by federal law. No one is allowed to call you about Medicare unless you have asked them to call OR you already have a relationship with the caller. For example, your current Medicare agent or insurance company is permitted to call you to discuss changes that are occurring in your plan(s).
Scammers often try to fool people into accepting their calls by claiming that they work for Medicare or that they’re calling on behalf of Medicare. The facts are that CMS (Centers for Medicare and Medicaid Services) does not employ any Medicare sales representatives, and CMS’s practice is to issue all communications in writing.
Unsolicited callers will sometimes leave messages about Medicare. Always ignore such messages unless you recognize the caller as your agent, insurance company, or someone who you’ve specifically asked to call you. The same goes for email messages—unsolicited emails about Medicare are also forbidden.
Turn Away In-Person Solicitations
A person is not allowed to show up unannounced to your home, nursing home, or other place of residence for the purpose of discussing Medicare coverage. If you haven’t asked for an agent to visit you, federal law prohibits a Medicare insurance agent from trying to sell to you by knocking on your door. Turn away any visitors who you haven’t previously agreed to meet with.
If you meet (or talk on the phone) with an insurance agent about a type of insurance that is not Medicare-related, that agent is not allowed to bring up the topic of Medicare. Turn away anyone who uses this illegal “bait and switch” tactic.
Be aware also that you cannot be solicited at promotional or educational events. While companies are allowed to distribute Medicare information at such events, they’re not allowed to collect names, addresses, or enrollment applications. Refuse anyone who tries to solicit you at such an event.
Recognize Illegal Practices and False Claims
If you receive information about Medicare plans, and you don’t have an existing relationship with the source, never assume that the information is valid. Always check it out by contacting your trusted sources. And here are some known things to watch out for:
- If someone claims you must buy some sort of coverage to avoid losing your other Medicare benefits, it’s a scam.
- If someone tells you your enrollment in an Advantage plan won’t affect your Medicare coverage, that’s wrong: If you sign up for an Advantage plan, you will be removed from your traditional Medicare plan.
- If someone claims that their plan is “Medicare-endorsed” or a preferred Medicare plan, that’s false. CMS does not endorse any privatized plan over all the other privatized plans.
- Beware of claims that a Medicare insurance plan can save you thousands of dollars in healthcare costs next year; no plan provider can honestly make that claim, without knowing the facts of your situation.
- Don’t be fooled by sales materials that look like they’re from a government agency. CMS approves and standardizes Advantage plans, prescription plans, and supplement plans, but they do not directly promote or sell any of these options.
- Stand firm against any requests for personal information. Never give out your Social Security number, Medicare number, bank account numbers, or credit card information to a stranger. (Know that Medicare will NEVER call and ask for your Medicare or Social Security number.)
Classic Insurance & Financial Services is an independent brokerage that specializes in helping clients select the right type of Medicare health insurance for their specific needs. To seek out our resources, services, and advice, click here. You may also choose to subscribe to our quarterly newsletter.
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