Medicare Fights Against New Schemes to Defraud Beneficiaries
Washington,
Jun 19, 2006 -
On Friday, the Centers for Medicare & Medicaid Services (CMS) issued a new consumer alert regarding the “$299 Ring” -- a scheme to defraud seniors and people with disabilities. Under this scheme, callers contact Medicare beneficiaries promising a new prescription drug card for a flat fee of $299, and request beneficiary bank account numbers that are then used to electronically withdraw the money.
CMS has learned that a new variation on the scheme requests higher dollar amounts and promises a new Medicare card, instead of a prescription drug plan. The dollar amount now requested by phone is usually $379, but in some cases callers have asked for $350 or $365. Medicare has already referred nearly 250 cases involving attempts to steal beneficiaries’ funds to federal law enforcement officials.
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.
“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, M.D., Ph.D. “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.
It is against Medicare’s rules to call a person with Medicare and ask for bank account, 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.
