Current Scams

With so many possible uses of Medicare ID numbers themselves as well as the related Social Security number, a variety of scams have been developed that directly target Medicare beneficiaries in an attempt to obtain and use their Medicare number for fraudulent purposes.

Sometimes the Medicare number is simply stolen by an employee at a nursing home, long-term care facility, hospital, clinic, etc. and then sold to organized crime units or gang leaders who then use the information to bill Medicare. In other cases, perpetrators provide an offer for “free services” but require the person’s Medicare number to provide those services. In some instances, scam artists target financially needy individuals and offer to pay them for their Medicare number or pay them to actually receive services they don’t need.

Christian Medical Equipment Suppliers
Be very careful of people who speak at your church and try to sign you up for durable medical equipment (DME). These scammers will often claim to be Christians who want to help their brothers and sisters with healthcare costs. They offer walkers, power wheelchairs, diabetics supplies, oxygen machines and other medical equipment. They often claim there will be no cost to the senior. Before you give these people your Medicare number, or before you let them speak to your congregation, make sure they are a legitimate company. Call Louisiana SMP and we will help you.

Medical Discount Plans
Medical discount plans can be a way for some people to save money on their health care costs, but discount plans aren’t health insurance. Some medical discount plans provide legitimate discounts; others take peoples’ money and offer very little in return. Many plans don’t include local providers or give you outdated lists of names and facilities. Some offers are just plain scams.
Be very careful of phone calls offering you affordable health insurance. Do not agree to anything or send any money until you have received a written explanation of what the plan covers. Legitimate companies will provide you with this information. Scam artists will try to pressure you to say “yes” right away. (Sept. 2010)

Surprise Home Health Visits:
Seniors in South Louisiana elderly housing units have reported unexpected visits from Home Health aides. Home health services must be ordered by a doctor and they are only available to people who have great difficulty leaving their home. If someone knocks on your door and offers to take your blood pressure, or do a glucose screening, or check your pulse rate, DO NOT LET THEM IN. These aides will ask to see your Medicare card. They will then use your Medicare number to charge Medicare for services that you have not received. It is illegal for a home health aide to charge Medicare for any services that have not been ordered by your doctor.  (Sept. 2010)

414 Area Code
Senior Medicare Patrol programs in Texas, Louisiana and California have received complaints regarding calls from 414 area codes. The caller says he/she is with a medical equipment company and offers the senior free diabetic supplies or mobility equipment. THESE CALLS ARE SCAMS.  The phone number appearing on the caller ID is spoofed, which means it is a stolen number that does not belong to the caller.
The caller often has part of the senior’s Medicare number and asks the senior to “verify” the rest of the number. The caller asks for the senior’s doctor’s name and phone number. The calls appear to be legitimate, but the companies that the callers represent DO NOT EXIST. They want Medicare numbers, which they then sell to scam artists. (August 2010)

False Front Providers:    
A new type of Medicare fraud is appearing in Louisiana and it’s easy for you to determine if your Medicare card has been used to perpetrate this type of fraud. Read your Medicare Summary Notice or Explanation of Benefits carefully. If you see charges billed to you from a physician in an unfamiliar city, give us a call. Doctors’ identities are being stolen and used to open false front offices. These offices do not provide actual medical care; they exist for the sole purpose of stealing money from Medicare. It is possible that the claim may looks as though it came from your real doctor. But, the office location listed is NOT the location when you see your doctor. If you see this on your Medicare Summary Notice, please call Louisiana SMP. (March 2010)

Scam Alert: That’s Not Uncle Sam at Your Door Selling an ‘ObamaCare’ Policy - March 29, 2010 from AARP - Read more about it...

Arthritis Kit Scam

In this scam, beneficiaries are told if they suffer from arthritis, diabetes, poor circulation, back aches, swelling, muscle soreness or hand or ankle inflammation that help is on the way with a Medicare-approved arthritis back kit. It’s free to those with Medicare Part A and B, and beneficiaries even qualify for a special heating pad and heat lamp.

This is not true. There is no such item as a Medicare arthritis kit.

SOURCE: Texas SMP

The Milk/Grocery Scheme

In this scheme, the promoter of the scam may be offering free milk, groceries, or some other product or service.  Regardless of the specific product being offered, any scheme following this general process is referred to as a Milk/Grocery Scheme.

• Promoter visits adult living facilities, senior communities, or government program offices and identifies specific individuals.
• Promoter approaches the consumers and tells them that Medicare, Medicaid, or a private insurance company wants to take care of them or is conducting a provider survey.
• Promoter gives consumers milk and/or food, cleans their homes, or delivers various equipment and tells the consumers that everything is free and provided by the government or a health insurance company.
• Promoter asks consumers to complete and sign a form proving they were visited. The form asks for Medicare and/or Medicaid numbers.
• Promoter leaves name and number and guarantees to return to bring more free items. Promoter also solicits names of other potential targets.

Free Medical Evaluations/Testing

The Free Medical Evaluations/Testing Scheme is similar to the previous scheme, except that in this case, free medical tests or evaluations are offered.

• Companies use phone solicitation, ads in newspapers, and coupons mailed or delivered to consumer's home to advertise free testing or services.
• Mobile Testing centers frequent shopping malls, retirement communities, fraternal organizations, civic groups, and conventions.
• Consumer is asked to complete a form to receive free tests.The form asks for Medicare, Medicaid, SSN, or insurance numbers.

Telemarketing/Boiler Room Scams

In Telemarketer/Boiler Room Scams, the telephone is used to obtain Medicare numbers.

• Telemarketing companies identifies specific targets through mailing lists and contacts consumers.
• Caller uses a high-pressure sales pitch to obtain Medicare, Medicaid, SSN, or private insurance information. Sales pitch deliberately confuses people into believing the caller represents the government or private insurers.

$299, $389 or $399 Scams

In these types of scams, Medicare numbers are not the only goal.  The scammers also obtain the beneficiary’s bank account information and use it to take as much money as possible directly from the beneficiary.

• Telemarketers/individuals identify themselves as a Prescription Drug Plan.
• Caller offers a Prescription Drug Plan that will provide a year’s supply of prescription drugs for one payment of $299, $389, or $399.
• The beneficiary is told payment can only be made by automatic withdrawal. The beneficiary is asked for his/her Medicare and/or Medicaid and bank account numbers so the plan can start the first of the month.
• The money is withdrawn with no prescription drugs delivered, or the bank account is cleaned out.