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Senior Citizen Alert
Telephone Scammers Raise the Price on Medicare Drug
Pitch
Medicare asks senior citizens to report
fraudulent activity
June 17, 2006 - The “$299 Ring” scheme to defraud
senior citizens and people with disabilities has changed into a higher
priced scam involving in some cases a new Medicare card, instead of a
prescription drug plan, warns the Centers for Medicare & Medicaid
Services. Medicare has already referred nearly 250 cases involving
attempts to steal beneficiaries’ funds to federal law enforcement
officials.
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Senior Citizen Alerts |
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CMS said Friday that the dollar amount now
requested by phone callers is usually $379, but cases have also occurred
where the callers asked for $350 or $365.
“By getting the message out to Medicare
beneficiaries about how they can avoid scams, we’ve seen the number of
incidents go down,” said CMS Administrator Mark B. McClellan.
“To protect all people with Medicare from being
victimized, we are taking further steps to prevent, identify and help
law enforcement officials apprehend these scam artists. And, if you
think you may be a victim, call 1-877-7SAFERX.”
The reported incidence of people with Medicare
falling victim to these scams, by actually paying money, has decreased
from 51 percent of the cases reported between Nov. 15, 2005, and April
30, 2006, to 25 percent between May 1, 2006, and June 7, 2006.
As part of the new scams, callers are now asking
for bank information or telling beneficiaries they can provide a new
Medicare card for a fee. Similar to the reported “$299 Ring,” callers
asked Medicare beneficiaries for bank account numbers that the callers
use to electronically withdraw the money. The new Medicare card or
prescription drug plan they claim to be selling is not legitimate.
Callers may use the names of fictitious companies,
such as "Pharma Corp., National Medical Office, Medicare National Office
and National Medicare."
It is against Medicare’s rules to call a person
with Medicare and ask for bank account or other personal information, or
cash payment, over the telephone.
No beneficiary should ever provide that kind of
information to someone who calls them. Such calls must be placed by the
beneficiaries themselves or handled by a follow-up letter to which the
beneficiary may choose to reply.
If someone calls asking for personal information,
or the call doesn’t seem right for some other reason, a beneficiary
should hang up the phone and contact Medicare at 1-877-7SAFERX
(1-877-772-3379) or his or her local law enforcement or consumer
protection agency.
Tips for People with Medicare to Protect Against
Scams
Medicare beneficiaries can take steps to protect
themselves by remembering:
● No one can come into your house uninvited.
● No one can ask you for personal information during their marketing
activities.
● Always keep all personal information, such as your Medicare number,
safe, just as you would a credit card or a bank account number.
● Whenever you have a question or concern about any activity regarding
Medicare, call 1-877-7SAFERX (1-877-772-3379).
● Legitimate Medicare drug plans will not ask for payment over the
telephone or the Internet. They must send a bill to the beneficiary for
the monthly premium.
● Beneficiaries can pay automatically by setting up a monthly
withdrawal from their Social Security check. Beneficiaries may also pay
by monthly check or set up an automatic withdrawal from a bank account,
but beneficiaries must call their plan or respond to a mailed payment
request from the plan to do this.
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