Medicare Life Insurance Scams: What You Need To Know

Medicare scams are a common form of identity theft, targeting elderly people in particular. Scammers will often contact victims via mail, email, or phone, claiming to be from Medicare or a legitimate healthcare insurance provider. They will use aggressive sales tactics and try to scare victims by threatening to cancel their Medicare benefits if they don't comply with their demands. Scammers may also try to take advantage of current events, such as the COVID-19 pandemic, to trick people into giving up their personal information. It is important to remember that Medicare will never call, email, or mail you out of the blue to ask for personal information or inform you of lost coverage.

Scammers pretend to be from Medicare and ask for personal information

Scammers pretending to be from Medicare and asking for personal information is a common scam. They will often use phone spoofing technology to manipulate your Caller ID to make it look like they are calling from Medicare, a health or life insurance provider, or a local phone number. They may also have some of your personal information, such as your name, address, date of birth, or even your Social Security number, which they will use to build trust. They will then try to create a sense of urgency or offer you a special deal to get you to act emotionally. They might claim that your Medicare card is about to expire or that you are eligible for a special plan with lower premiums. They will then ask you to "verify" your Medicare number or other sensitive information, such as your Social Security number or bank account information. They may also pressure you to enrol in a fake or misrepresented plan or convince you to send them money to pay for services.

If you receive a call like this, remember that Medicare will never call you directly unless you have already contacted them with a request. Do not give out your personal information, hang up the phone, and report the scam call to Medicare or the Federal Trade Commission (FTC). You can also warn your friends and family members, as they may also be targeted by similar scams.

Scammers ask for payment for a new Medicare card

Scammers pretending to be from Medicare may call and ask for your Social Security number or bank account information to get a new card or new benefits. They may also claim that you need to pay a fee for a new Medicare card or risk losing your coverage. These are scams. You never need to pay for a new card, and Medicare will never call out of the blue to say you'll lose coverage.

In one variation of this scam, criminals pretend to be from Medicare and tell beneficiaries that they will be receiving a new Medicare card with a chip or one that is plastic instead of paper, which does not exist (Medicare cards are paper and do not have a chip). They may even say the new card comes with additional benefits, such as a gift card. The scammer will then say they just needs to confirm the Medicare ID and other personal information, such as banking account information, to make sure they can continue paying their premiums.

In another variation, scammers may ask for your new, randomly generated ID number to confirm that you received your card or to "activate" it. A scammer may also tell you that your new card won't work because it isn't the correct one, offering to send you a replacement card if you give them your personal information.

If you receive a call claiming to be from your doctor's office, pharmacy, or Medicare office asking for your Medicare card number, hang up and call back on the number you know to be associated with them. Do not use a number they give you.

Scammers try to sell fake medical discount plans

• Confirm the details: Check whether the doctors you use participate in the plan. Call your providers, as well as others on the plan's list, before enrolling or paying any fees. Some dishonest promoters may tell you that specific local doctors participate when they do not or may send outdated lists.
• Avoid "up to" discounts: Scammers might claim you'll get "discounts of up to 70%," for example. However, savings with discount plans are typically much less than promised. When you factor in the monthly premiums and enrollment fees, you might end up with no discount at all.
• Check with your state: Many states require medical discount programs to be licensed or registered. Ask your state insurance commissioner's office if the medical discount program you're considering is licensed. Additionally, if someone claims that a medical discount program is health insurance, verify this with the state insurance commissioner's office. It's important to remember that medical discount plans are not insurance and are not a substitute for health insurance.
• Don't sign up on the spot: Legitimate plans should be willing to provide written information and give you the chance to check out their claims before enrolling. If you feel pressured to sign up quickly or are threatened with missing out on a "special deal," it's a red flag. Take the time to research the offer and get the details in writing before committing.

If you think you've encountered a scam, it's essential to report it to the FTC at ReportFraud.ftc.gov and your state attorney general. Additionally, if it's a Medicare scam, report it at Medicare.gov or by calling 1-800-MEDICARE.

Scammers want your personal information in exchange for a price quote

Scammers are always looking for new ways to steal your money and personal information. They pretend to be from the government and need money or your personal information. They will never ask you to verify your Social Security, bank account, or credit card number, and they won't ask you to wire money or pay by gift card or cryptocurrency.

The Affordable Care Act's (ACA) official government site is HealthCare.gov. It lets you compare prices on health insurance plans, check your eligibility for healthcare subsidies, and begin enrollment. But HealthCare.gov will only ask for your monthly income and your age to give you a price quote. Never enter personal financial information like your Social Security, bank account, or credit card number to get a quote for health insurance. You’ll be setting yourself up for robocalls or much worse — identity theft.

Scammers may also try to sell you a fake medical discount plan. Medical discount plans charge you a monthly fee for discounts on specific medical services or products from a list of participating providers. They’re not a substitute for health insurance. While some medical discount plans provide legitimate discounts, others take people’s money and offer very little in return. So, if you’re considering one, check out every claim the plan makes, including whether your doctor participates in the plan. And be sure to get the details of the discount plan in writing before you sign up.

Medicare scammers often target older adults, but anyone can be targeted. They will use your personal information that they found online (usually after it was leaked in a data breach) to build trust. They could have your name, address, date of birth, or even your Social Security number. They will then create a sense of urgency or try to get you to act emotionally. They might claim that your Medicare card is about to expire or that you’re eligible for a special plan with lower premiums. Finally, they will ask you to "verify" your Medicare number or other sensitive information.

If you receive a call from someone claiming to be from Medicare and asking for personal information in exchange for a price quote, hang up immediately. Medicare will never call you directly unless you have called them with a request. If you get an unsolicited call, it’s a scam.

Scammers pretend to offer help with the Health Insurance Marketplace

Scammers pretending to offer help with the Health Insurance Marketplace is a common issue. Here are some signs to watch out for:

Requesting Money for Help

The people who offer legitimate help with the Health Insurance Marketplace, also known as "Navigators" or "Assisters", are not allowed to charge you for their services and will not ask for personal or financial information. If someone requests money to enroll you in the Marketplace, they are not legitimate.

High-Pressure Visits, Mail, Emails, and Calls

Scammers may employ high-pressure tactics to rush you into making a decision. They may visit your home, send mail, or contact you via email or phone, pretending to work for the government. They may even threaten you with legal action if you do not sign up for a plan. Remember, no one should threaten you with legal action if you do not sign up. Always ask for identification if someone visits your home.

Unsolicited Requests for Personal Information

If you receive unsolicited requests for personal information, this could be an attempt to steal your identity. No one from the government will call or email you to sell an insurance plan or ask for personal information such as your Social Security number, credit card number, or bank account details. Be cautious of giving out such information.

Fake Websites

Scammers may create sham websites that mimic official government websites. Always look for official government seals, logos, or website addresses ending in ".gov" to ensure you are on a legitimate site.

Offering Perks or Gifts

Be cautious of health insurance advertisements on social media that offer cash, gifts, or other perks. The information you share could be used without your consent. Legitimate agents are prohibited by law from offering gifts or meals in exchange for signing up for a plan.

Unsolicited Offers of Drug Coverage

Medicare Part D providers are not allowed to visit your home unless you have invited them. Do not entertain unsolicited offers of drug coverage that come to your door.

If you suspect you are being scammed, hang up the phone, and report the incident to the relevant authorities. Remember, Medicare.gov or 1-800-MEDICARE (1-800-633-4227) is the official Medicare website and phone number. For the Health Insurance Marketplace, use HealthCare.gov or 1-800-318-2596.

Frequently asked questions