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Medicare Scams Feared As Deadline Approaches

May 9, 2006

Medicare Drug Plan • House Passes Bill to Cut Medicare Prescription Drug Costs • Study Finds "Tremendous" Disparity In Medicare Prescription Drug Prices • Medicare Drug Plan Costs Rising • Medicare Call Centers Inadequate, Report Charges • Report: Shopping Around Beats Medicare Drug Prices • Confusion Ahead: New Medicare Plans for 2007 • GAO Faults Medicare Help Lines • Medicare Scams Feared As Deadline Approaches • Medicare Drug Plan: Big Win or Big Flop? • AARP Survey Finds Medicare Rx Is What the Doctor Ordered • NY Consumer Group Challenges Medicare Enrollment Numbers • States' Suit Challenges Medicare Drug Plan • AARP Wants Changes in Medicare Rx Plan • States Sue Peoples Benefit Services • Rampant Fraud Feared as Medicare Drug Benefit Ramps Up • Biggest Medicare Drug Benefit Challenge: Understanding It • Deciphering the New Medicare Drug Program • Beware! Scams Abound • How to Spot a Scam • Seniors Try to Decipher New Drug Program --- • More Medicare News ...

With the May 15 deadline for enrolling in a Medicare Part D drug benefit program looming, law enforcement officials are warning seniors not to fall for the Medicare-related scams that have been making the rounds.

They warn that the May 15th deadline, after which enrollees will have to pay more for premiums, may be used as leverage to pressure seniors into purchasing bogus coverage.

The also say scammers are exploiting the widespread confusion about the complex program.

Mississippi Attorney General Jim Hood said his office has investigated a number of complaints involving a company going door- to-door convincing Medicare recipients to switch their traditional Medicare coverage (Parts A & B) for coverage under a Part C plan.

Medicare Part C allows qualified insurance carriers to pick up coverage for the customer and Medicare in turn pays the carrier a premium.

"It's one thing if you're unhappy and want to make a change, but in some of the cases we're investigating, people were told that their current coverage was about to expire and they needed to switch," Hood said. "They felt they were misled."

Hood advises consumers not to buy insurance coverage from someone who shows up uninvited. He also suggest that you seek the advice of someone you know and trust before making a switch.

The initial sign-up period for Medicare's new prescription drug benefit ends May 15.

Every one-month delay in joining a Medicare prescription drug plan means a 1 percent increase in monthly premium charges. That translates into an automatic seven percent increase for anyone who joins in November, when the next enrollment period begins. That's because the benefit for those late joiners won't start until Jan. 1, 2007.

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