4 Tips to Avoid Falling for a Medicare Scam

Photo of author

(Newswire.net — August 31, 2018) — If you’re an American over the age of 65, who has filed taxes for the past decade and can receive Social Security benefits, then chances are, you are eligible for Medicare or are currently enrolled. In fact, 64 million beneficiaries are projected to be eligible for Medicare in 2020, making this form of insurance among the most widespread in our nation.

But while Medicare coverage is both affordable and accessible for many people in the retirement age bracket, it’s also worth noting that Medicare fraud is a growing concern. If you are one of the millions who depend on Medicare for health insurance, then you need to be aware of the signs of a Medicare scam. These pointers below can help you to recognize potential threats and protect yourself against a stolen identity at the hands of would-be Medicare scammers.   

Be on the Lookout for Processing Fees.

There is no charge for the issuing of new Medicare cards, points out cybersecurity expert Steve Weisman, so if you are an existing Medicare customer, be skeptical of any processing fees associated with that new card. If you are contacted by someone requesting payment before your card is delivered, this caller is not an authentic Medicare representative but a scammer who wants access to your banking information. In the event you are targeted, don’t agree to a transaction—your real Medicare card will arrive free-of-charge between April 2018 and April 2019.

Do Not Disclose Personal Information.

Medicare will never require you to confirm any personal data over the phone, explains Federal Trade Commission attorney Lisa Weintraub Schifferle. If you are prompted to verify sensitive information like your address, bank account or Social Security number, this is a clear indication of fraudulence. Medicare doesn’t need private data to issue a new card or look into claim adjustments—they should have this information in a secure file. If you have disclosed this over the phone, you need to report the incident to Medicare.gov directly as soon as possible.  

Make Sure to Destroy Your Old Cards.

Sometimes beneficiaries are contacted with a request to mail-in their expired Medicare cards, but this is just a scheme to obtain the social security number on it. The new cards are issued with an 11-digit identifier that is different from a Social Security number, so scammers might attempt get to your SSN through accessing the old cards. To prevent this from occurring, AARP fraudulent claims expert Amy Nofziger recommends shredding the expired card once its replacement arrives in the mail. This will ensure that your personal data won’t fall into the wrong hands.    

Call the Official Agency When in Doubt.

In the majority of cases, Medicare does not communicate with its recipients over the phone, so if you receive a call that’s suspicious, trust your intuition. Avoid engaging with anyone who seems like they might be a scammer, advises Kelly Phillips Erb. If it seems like you have just been targeted in a potential scam, then terminate the call immediately and contact the official agency in question to determine if the caller was, in fact, an actual representative. Below are phone numbers to dial for assistance.

  • Medicare Fraud Hotline: 1-800-633-4227

  • Office of the Inspector General: 1-800-447-8477

  • Social Security Administration: 1-800-772-1213

  • Internal Revenue Service: 1-800-829-1040

Medicare insurance is advantageous to millions of people, but with those benefits also come the pitfalls of scamming tactics. In order to maximize your coverage and protect yourself against the threat of Medicare fraud, take these precautions seriously and report dubious activity through the right channels. Your retirement should not be encumbered by the stress and hassle of identity theft.