Elder Law FAX -- February 27, 2006

Medicare Recipients: Beware of Scam Artists Selling Medicare Prescription Drug Coverage
The federal government has started a new Medicare Prescription Drug coverage benefit for Medicare beneficiaries. Over the past several months, the new Medicare drug coverage plan has been featured in several issues of Elder Law FAX -- see, for example, our December 26, 2005, issue.

Enrollment for the program began on January 1st. Private insurance companies, whose plans have been approved by Medicare, are selling these new Medicare Prescription Drug Plans (also called PDPs). Insurance agents are selling this product to Medicare beneficiaries. There are millions of people on Medicare eligible for the program and there is a lot of sales activity going on between now and May 15 (the end of the open enrollment period).

The Centers for Medicare & Medicaid Services, the federal government agency that runs the Medicare programs, and the National Association of Insurance Commissioners say, "We are concerned that scam artists will try to take advantage of the situation and try to steal your money."

Here are some tips from the Medicare agency and the NAIC to avoid becoming the victim of a scam artist:
* Beware of door-to-door salesmen. Agents cannot solicit business at your home without an appointment. Don't let them into your home.

* Check with your state's insurance department (available through http://www.naic.org/state_web_map.htm) to make sure the salesman is licensed as an agent.

* Do not give out personal information, such as Social Security, bank account numbers or credit card numbers to anyone you have not verified is a licensed agent. People are not allowed to request such personal information in their marketing activities and cannot ask for payment over the Internet.+ They must send you a bill. Once you decide to purchase a plan and have verified that the agent is licensed, you may give the agent personal information to assist in enrollment and billing.

* Verify that the plan is an approved Medicare plan. All of the approved plans are available at www.medicare.gov or you can call 1-800-MEDICARE.

* If you suspect fraud, call the U. S. Department of Health and Human Services Inspector General at 1-800-HHS-TIPS.

* Contact your local State Health Insurance Assistance Program (contact information available through http://www.medicare.gov/contacts/static/allStateContacts.asp) if you have any questions at all.

* To avoid being a victim, verify before you buy.

+If you sign-up for a plan through the Medicare.gov website, you will need to provide your Medicare number.

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