Avoid Senior Scams: Medicare, Final Expense and Home Insurance Rackets

The old cliche, “If it’s too good to be true, it usually is,” really applies to Medicare scams and other scams targeting seniors. Life insurance and homeowners insurance rackets have also become a problem in recent years. In short, if you receive a mailer or someone contacts you regarding free services or stuff and they need your Medicare and social security number, you are probably going to get swindled so beware! Here are some common senior scams and what you should do if you suspect that you’re been targeted.

On This Page

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  The Most Common Medicare Scams

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  Final Expense Insurance Scam Mailers Targeting Seniors

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  Seniors Discounted Home Insurance Scam

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  Is Medicare Advantage a Scam?

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  Medicare and Senior Scams FAQs

The Most Common Medicare Scams

Medicare Card Scams

You may be told that you need to update your card as a way of getting you to send your card to a fraudster who will then steal your identity. Not only will they get your social security number or Medicare number, but they may charge processing fees on top of committing identity theft.

Sometimes, they’ll call saying there’s been fraudulent activity on your account and ask you to verify your information, which they then steal. When giving out Medicare information and social security numbers, always be the one who initiated the call.

Don’t be embarrassed of seeming suspicious – you should be, with so many scammers targeting senior citizens.

If you get a call threatening to cancel coverage and are asked for your information, it may be a scam. Again, it just takes you hanging up the phone and calling Medicare directly to find out what’s really going on.

Medicare Number Scam: Phone Calls From Scammers

You may get calls pressuring you to switch Medicare plans with zero-dollar premiums. While there are legitimate Medicare price comparisons websites, like SmartFinancial, you may get calls from scammers so it’s best to compare Medicare plans by initiating the call yourself, not the other way around, because you never know who is on the other end of the call.

Medicare Food Allowance Scam

Only Medicare Advantage plans offer a food allowance and that requires applying to see if you’re eligible, based on an income threshold. Do not accept debit cards or any type of transaction from a vendor telling you that they provide a Medicare-approved food allowance, unless you’re on Medicare Advantage and have applied. Even then, it’s better to first contact your Medicare Advantage company and ask if there’s been a determined outcome and how to proceed if you qualify. Usually, recipients of the food allowance are both Medicaid and Medicare recipients.

Medical Equipment Scam

You may be contacted with offers for free or almost-free medical equipment, which would otherwise cost a lot. Don’t fall for it. A legitimate company will not contact you directly. If you’re really tempted, get their information, research it and contact Medicare to see if the offer is legit. Otherwise, you may give out sensitive information that may hurt your Medicare account and/or your bank account.

Free Medical Screening Scam

If you are called or receive a mailer about free medical exams or services, it may be a scam. Most medical screenings are covered by Medicare, so if you are interested in something you’re contacted about, call your primary care provider and see if you can schedule that service through a more secure process.

Fraudsters spend lots of time and money creating mailers and fake websites to steal your valuable Medicare information.

Genetic Testing Kits

Do not accept testing kits that were not authorized by your primary care provider if they are mailed to use. Refuse the shipment or send it back to the sender. This may be a way of getting your precious Medicare information for fraudulent purposes.

Hospice Fraud

Beware of fraudulent activity taking place in your name. Some hospice companies sign up Medicare recipients with certain enticements like at-home care, including food preparation. They may call it “palliative care,” but it’s really hospice.

Hospice care is only for people not expected to live more than six months. Some seniors are tricked into signing up only to be stopped when picking up prescriptions, which signal Medicare to the fact that the beneficiary is not terminally ill.

Billing Scams

Even if you’re not getting billed, it’s a good idea to review the Medicare services your account is being billed for, to detect fraud before it goes very far. Someone may be using your information to get services from a scam if you unwittingly shared personal information to a scammer in the past.

Refund Scams

Hearing you’re getting money back as a refund is always exciting, but when it comes to Medicare, it may be a trap. Never give out your information for any type of refund, not until you know exactly where the call is coming from and that it’s a safe source. This requires some research on your part. It’s always best to call Medicare directly to inquire about the refund – if it even exists! They will most likely ask for Medicare information as well as bank account information. Don’t fall for it.

Final Expense Insurance Scam Mailers Targeting Seniors

Final expenses include burial costs, funeral costs and outstanding debts. Some fraudsters send mailers to seniors offering final expenses coverage without having to answer any questions or to get a medical exam. Some will claim to work with an insurance company whose name may be familiar, but they may be lying to get your personal information. If you are the victim of a final expense insurance scam, report it to your local police, state Attorney General’s office and the FTC.

Final Expense Insurance Scam Calls Targeting Seniors

Sometimes, fraudsters will contact you via robocall asking if you’re interested in covering 100% of your final expenses and offering press pad options. If you want a legitimate final expense life insurance company, compare quotes from a reputable source. Don’t trust all calls and mailers.

Seniors Discounted Home Insurance Scam

Someone posing as an insurance agent or broker may contact you offering a senior discount on homeowners insurance. The person could be completely lying to get your personal information. Sometimes, they are from an insurance company but the coverage they are offering is not adequate, if you ever have to file a claim. It’s always a good idea to research anyone who contacts you. They should be on LinkedIn, and the insurance company they are with should also be easy to find as well. The terms of a policy are always important too. If you buy a fire-coverage only policy and a tornado tears off your roof, you won’t have any coverage at all! Hidden fees are also sometimes a part of a scam, costing you even more than if you hadn’t switched in the first place.

Is Medicare Advantage a Scam?

Medicare Advantage, also called Medicare Part C or MA for short, is not a scam at all. It’s the privatized version of original Medicare, with all the safeguards, as all Medicare Advantage plans are under federal regulations just like the original.

Many Medicare recipients switch to Part C Medicare Advantage because these plans can include a prescription drug plan, vision, dental health and hearing benefits. You may or may not have a premium, but there are many options available based on your location.

Just like health insurance, you have greater coverage with providers who operate in your coverage network and you can choose between an HMO or PPO plan. Compare Medicare Advantage plans to see which plan has the benefits you need, instead of having to buy Medicare Supplements.

However, if you choose to keep your original Medicare plan, make sure you are aware of the Medicare Supplements that are available to you. You may be able to save hundreds of dollars a year by getting the right coverages to offset out-of-pocket costs. Take a few minutes to fully review Medigap plans to see which may save you money.

While it’s discouraged that you click on links emailed to you from an unknown sender, you can safely compare Medicare products with SmartFinanical, either by filling out a brief questionnaire online or by calling to answer a few questions: 855.214.2291.