CMS Warns of Medicare Scam

BALTIMORE–CMS is warning seniors and people with disabilities
to be aware of a scheme that asks Medicare beneficiaries for money
and checking account information to enroll them in a nonexistent
prescription drug plan.

The scheme is called the “$299 Ring” for the typical amount of
money Medicare beneficiaries are talked into withdrawing from their
checking accounts.

Medicare has received complaints from Indiana, Michigan,
Pennsylvania, Massachusetts, New Jersey and Georgia. Complaints
have been made against a number of different companies, but
authorities believe that the companies are the same and are
typically based outside the country.

No Medicare drug plan can ask a person with Medicare for bank
account or other personal information over the telephone, CMS
explained in an alert issued last week. Additionally, legitimate
Medicare drug plans will not ask for payment over the telephone or
the Internet. They must bill the beneficiary for the monthly
premium. Typically, that amount is set up as an automatic
withdrawal from the beneficiary’s monthly Social Security check.
Beneficiaries may also opt to pay the monthly premiums in other
ways such as writing a check or setting up automatic payments from
their checking accounts.

Consumers can report these cases their local police department
or call (877) 772-3379.