Senior Citizens May Avoid Medicare Marketing Fraud
by Knowing the Rules
Medicare private plans must follow certain rules and
you should know what is allowed
Aug. 13, 2008 – With a huge market to exploit –
abut 36 million senior citizens on Medicare – the hucksters stay busy,
according to congressional reports. The Medicare Rights Center has
produced some tips for older Americans on the rules that must be
followed to market these plans. Sales people who violate these rules
should be suspect.
People with Medicare can receive their health care
benefits in one of three ways:
(1) Original Medicare (the traditional fee-for-service coverage
from the federal government);
(2) Original Medicare with supplemental insurance (such as a
Medigap or retiree plan); or
(3) a Medicare private health plan, also known as a “Medicare
Advantage” plan.
Prescription drug coverage (Part D) is available
either through stand-alone drug plans (PDPs) that work with Original
Medicare (and a few private health plans), or as part of Medicare
private health plan benefits packages.
The companies that sell Medicare private health and
drug plans must follow certain rules when promoting their products. The
guidelines are meant to prevent plans from deceiving you through
marketing materials or through someone representing the plan - about
what the plan offers and how much it costs. That is called marketing
fraud.
Plans can market their plan through direct mail and
radio, television and print advertisements. Agents can even visit your
home, but only if you have invited them. However,
Medicare private plans, however, must follow
certain rules. By knowing what is and is not allowed, you can protect
yourself from falling victim to marketing fraud.
Remember these tips on what plans cannot do:
● enroll you over the telephone if they
called you. If you would like to enroll, you should call the plan
back yourself;
● ask for your financial or personal
information if they call you. Beware if you are asked for your
Social Security or Medicare number or your bank information;
● request payment over the telephone;
● visit you in your home or nursing home
room without an invitation. You can ask the plan to send someone to
your house, but they cannot just knock on your door uninvited;
● provide gifts or prizes worth more than
$15 to encourage you to enroll. Gifts or prizes that are worth more
than $15 must be made available to the general public, not just to
people with Medicare);
● disregard the National Do-Not-Call
Registry and “do not call again” requests. Plans must comply with
federal and state consumer protection laws for telemarketing. You can
register online for the National Do-Not-Call Registry or by calling from
the number you wish to register.
● send you unsolicited e-mails. You must
have specifically requested information in order for a plan to e-mail
you;
● compare their plan to another plan by name
in advertising materials;
● include the term “Medicare Endorsed” or
suggest that it is a preferred Medicare drug plan. Plans can use
“Medicare” in their names as long as it follows the plan name (for
example, the Acme Medicare Plan) and the usage does not suggest Medicare
endorses that particular plan above any other Medicare plan;
● use information that they have obtained
from you to market non-health-related products and services without your
written consent. Plans cannot use information about you (such as
your name and address) that they got by providing you Medicare services
to try to sell you other products, like auto insurance.
To learn more about Medicare private health and
drug plans, and how you can protect yourself from marketing fraud, log
on to Medicare Interactive Counselor at
www.medicareinteractive.org.
Medicare Interactive Counselor is a resource
provided by the Medicare Rights Center, which claims to be the largest
independent source of health care information and assistance in the
United States for people with Medicare.
Keep up with the latest news for senior citizens, baby
boomers
Aug. 13, 2008 – With a huge market to exploit –
abut 36 million senior citizens on Medicare – the hucksters stay busy,
according to congressional reports. The Medicare Rights Center has
produced some tips for older Americans on the rules that must be
followed to market these plans. Sales people who violate these rules
should be suspect.