Medicare ‘$299’ Telephone Scammers Ask for More Money

BALTIMORE–A scam asking Medicare beneficiaries for money to
enroll them in a nonexistent prescription drug plan has changed
into a higher-priced scam, CMS said.

The scam–which targets seniors and people with
disabilities–was originally known as the “$299 Ring” for the
typical amount of money beneficiaries are talked into withdrawing
from their checking accounts (see HomeCare
Monday, March 13). The amount now requested by phone
callers is usually $379, but in some cases is $350 or $365.

In the new scams, CMS said that callers ask for bank information
or tell beneficiaries they can provide a new Medicare card for a
fee. As with the “$299 Ring,” callers ask Medicare beneficiaries
for bank account numbers that they then use to withdraw money
electronically.

Callers may use the names of fictitious companies, such as
Pharma Corp., National Medical Office, Medicare National Office and
National Medicare.

No Medicare beneficiary should ever provide a bank account
number or other personal information to someone who calls them, CMS
said.

Medicare has already referred nearly 250 cases involving
attempts to steal beneficiaries’ money to federal law enforcement
officials. Consumers can report these cases to their local police
departments or call (877) 772-3379.