Scams
From the Office of Inspector General
Articles
Scams for Obtaining Medicare Numbers
Scammers target Medicare beneficiaries to obtain their Medicare,
Social Security, and bank account numbers, which they can use for a
variety of fraudulent purposes.
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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 use the information
to bill Medicare.
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In other cases, perpetrators provide an offer for “free
services” but require the person’s Medicare number to
provide those services.
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In some instances, scam artists target financially needy
individuals and offer to pay them for their Medicare number or pay them
to receive services they don’t need.
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.
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Promoter visits adult living facilities, senior communities, or
government program offices and identifies specific individuals.
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Promoter approaches consumers and tells them that Medicare,
Medicaid, or a private insurance company wants to take care of them or
is conducting a provider survey.
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Promoter gives consumers milk and/or food, cleans their homes, or
delivers various equipment and tells consumers that everything is free
and provided by the government or a health insurance company.
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Promoter asks consumers to complete and sign a form proving they
were visited. The form asks for Medicare and/or Medicaid numbers.
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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.
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Companies use phone solicitation, ads in newspapers, and coupons
mailed or delivered to consumer's home to advertise free testing or
services.
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Mobile testing centers frequent shopping malls, retirement
communities, fraternal organizations, civic groups, and
conventions.
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Consumer is asked to complete a form to receive free tests.The form
asks for Medicare, Medicaid, Social Security, or insurance
numbers.
Telemarketing/Boiler Room Scams
In telemarketer/boiler room scams, the telephone is used to obtain
Medicare numbers.
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Telemarketing company identifies specific targets through mailing
lists and contacts consumers.
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Caller uses a high-pressure sales pitch to obtain Medicare,
Medicaid, Social Security numbers 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.
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Telemarketers/individuals identify themselves as a prescription
drug plan.
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Caller offers a prescription drug plan that will provide a
year’s supply of prescription drugs for one payment of $299, $389,
or $399.
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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.
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The money is withdrawn with no prescription drugs delivered or the
bank account is cleaned out.
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
More Information
FDA Health Fraud Awareness Video
Disclaimer