FTC Warns About Potential Risks of Online Medicare Scams

Americans looking for information about Medicare online are advised to exercise caution. Scammers are increasingly paying to place ads at the top of search results. The Federal Trade Commission (FTC) has issued a warning as Medicare Open Enrollment approaches, running from October 15 to December 7. While health insurance scams are a year-round issue, they spike during Medicare and Health Insurance Marketplace enrollment periods.

About the FTC Warning

The FTC highlights that some bad actors purchase prominent search placements, creating websites that mimic official government pages. These sites use keywords and official-looking logos, misleading users into believing they are visiting legitimate pages like Healthcare.gov or Medicare.gov. Clicking on links or using phone numbers from these ads can lead to buying fraudulent plans or risk medical identity theft.

Why You Should Care

Medicare scams have implications beyond financial loss. The FTC notes fraud, errors, and abuse burden taxpayers with about $60 billion annually. These fraudulent activities can lead to medical identity theft, resulting in lost benefits and increased medical costs. Examples include providers charging twice for the same treatment, billing for equipment not received, or selling fake Medicare drug plans.

Key Points to Consider

The latest FTC alert highlights that scammers often pay to appear at the top of search results. These misleading advertisements are designed to mimic official government websites and trick individuals into sharing personal information, paying unnecessary fees, or enrolling in deceptive services. Michael Ryan, a finance expert, noted how scammers strategically position these ads to look official, increasing the risk of mistaken identity by users.

Preventing Medicare Search Scams

• Visit Medicare.gov directly. The FTC regards this as the official source. Alternatively, call 800-633-4227 or 1-800-MEDICARE.
• Look for “Ad” or “Sponsored” labels. These indicate paid placements.
• Check for “.gov” in URLs. Scroll past ads to ensure you’re on a government site.
• Don’t rush decision-making. Take time before clicking search results.

State Health Insurance Assistance Programs and Senior Medicare Patrols can assist in comparing costs, coverage, and plans. Remember, Medicare will not unexpectedly call or visit your home to sell plans. Being cautious and verifying information on the official website can safeguard against potential scams.

Understanding Medicare Fraud

Fraud isn’t limited to fake enrollment pages. It can include double billing or charges for non-received supplies. Scammers might use fake drug plans or obtain your Medicare number for fraudulent claims. During open enrollment, there’s considerable concern over making the right decisions and meeting deadlines. Scammers exploit this uncertainty. A fake site may sell worthless insurance, steal Medicare numbers for false claims, or divert individuals into unintended coverage.

Check your Medicare statements regularly for unfamiliar charges or discrepancies. If you suspect a scam, report it via Medicare.gov or call 1-800-MEDICARE. Alex Beene, a financial literacy instructor, stressed verifying the source, especially as scams get more sophisticated at mimicking official information.