The Centers for Medicare and Medicaid Services (CMS) warns seniors and people with disabilities to be aware of any scheme that asks Medicare beneficiaries for money and checking account information to help them enroll in a Medicare beneficiary Prescription Drug Plan.

The “$299 Ring”

• This scheme is called the “$299 Ring” because this is the typical amount of money Medicare beneficiaries are talked into withdrawing from their checking accounts to pay for a non-existent drug plan. For more information on this and other types of scams, visit http://www.cms.hhs.gov/apps/media/press/release.asp?Counter=1794 . Consumers can report these cases to their local law enforcement agencies, 1-877-7SAFERX (1-877-722-3379), or if you’re in the North Mississippi area, contact the North Mississippi Rural Legal Services in Oxford at 1-800-898-8731.

Remember:

• No Medicare drug plan can ask a person with Medicare for bank account or other personal information over the telephone.
• No beneficiary should ever provide bank account information to a caller.
• Contact your local police department if you believe someone is trying to take money or information illegally.
• No one can come into your home uninvited.
• No one can ask you for personal information during their marketing activities.
• Always keep all personal information safe, including your Medicare number.
• If you have any question about Medicare activities, call 1-800-MEDICARE (1-800-633-4227)

This scam has been reported in Indiana, Michigan, Pennsylvania, Massachusetts, New Jersey, Georgia, and Mississippi. Recently in North Mississippi, the scammer knew all of the victim’s personal information and told the victim to sign up immediately and pay $298 or lose all Medicare benefits. The victim reported the incident to the bank, but the scammer changed its company name and the amount by a few cents, and the money was lost.

Reports have also been received about potentially fraudulent companies using email and the Web to offer free or low-cost prescription drug programs for a fee. Consumers have been asked to pay as much as $195, or a finder’s fee of $5 per prescription to locate free drug programs.

Other types of potential scams being reported include:

• Individuals falsely representing themselves as being from the Medicare, the Social Security Administration or the American Medical Association;
• Consumers being asked to sell their prescription drugs or use their Medicare benefits to cover someone else’s medications;
• Illegal kickbacks to pharmacies, doctor’s or other health care providers to encourage them to change prescriptions or prescribe drugs that aren’t needed; and
• Prescription drug shorting - the pharmacy providing less pills than prescribed.

Consumers need to know the facts:

• The Social Security Administration and Medicare are not going to call or visit people to enroll them in a prescription drug or other health plan;
• The American Medical Association does not make calls to consumers;
• No one can come into their home uninvited;
• Medicare Prescription Drug Plans’ (Medicare Part D) sales representatives are allowed to call people with Medicare to talk about the drug plans they represent. However, they are not allowed to ask a person with Medicare for bank account, Medicare number or other personal information over the phone;
• Information on free and low-cost prescription drug programs is available at no charge. Consumers should ask their pharmacist, physician, local Area Agency or Senior Medicare Patrol project for information, or check out Web sites like www.benfitscheckup.org (Search by entering a key word such as “Prescription Drug Plan”). Web site programs use computer programs to determine whether there might be a match for you among the various programs.

To avoid these and other scams, consumers should be urged to take the following actions:

• Hang up the phone immediately when someone calls with one of these offers.
• Never give any personal information, such as Medicare, Social Security, bank account or credit card numbers to anyone who calls on the phone or comes to the door.
• Sign up for the National Do Not Call Registry at 1-888-382-1222 or www.donotcall.com . Call 911 if they feel threatened.
• Report scams to their local police or sheriff’s office.
• Call their local Senior Medicare Patrol (SMP) (www.smpresource.org) to report or discuss possible fraud or scams and to schedule a presentation about fraud for your group.
• Whenever they have a question or concern about any activity regarding Medicare, call 1-800-MEDICARE (1-800-633-4227).

If you receive a report of someone stealing or attempting to steal someone’s money or personal information, call:

• Your local police department;
• Your local Senior Medicare Patrol;
• 1-877-7SAFERX (1-877-772-3379); OR
• 1-800-HHS-TIPS (1-800-447-8477).

If you believe personal information has been stolen or misused, call:

• Federal Trade Commission’s ID Theft hotline at 1-877-438-4338 (TTY users should call 1-866-653-4261).

If you believe that an organization has violated Medicare marketing guidelines for the Prescription Drug Program, call:

• 1-877-7SAFERX (1-877-722-3379); AND
• Your state insurance commissioner

o For the State of Louisiana – Statewide Toll Free1-800 259-5300;
o For the State of Mississippi - Statewide Toll Free: 1- 800 562 2957;
o For the State of Missouri – Statewide Toll Free: 1-800-726-7390; OR
o Locate your State at this website http://www.naic.org/state_web_map.htm

Contact your local Senior Medicare Patrol Program for help or to report a complaint. These are programs funded by the US Administration on Aging, with staff and volunteers available to help gather and review information and ensure appropriate referrals are made to law enforcement or regulatory agencies. To find your local SMP, visit www.smpresource.org or call 1-877-808-2468.