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If you are one of the 65 million people who have Medicare, good news! Open enrollment has begun. It started on October 15 and runs through December 7, which should be plenty of time to compare plans and options and select the right ones for you.
You can do this on Medicare.gov, by looking at the Medicare & You handbook to find the plans, or by working with a broker or agent to help you figure out which plan is best for you.1 You can also contact your State Health Insurance Assistance Program (SHIP) for guidance.
It makes sense that you might want a little help in figuring things out. In addition to traditional Medicare plans, there are currently more than 60 private plans and supplemental options available for those on Medicare. Comparing them often means wading through the little nuances and numbers, which can be exhausting. It’s definitely not as easy as looking at Alert1’s alert for elderly adults options!
While figuring out your Medicare choices can be difficult enough, the process can be made even more daunting by the constant ads, calls, and scams that many seniors face during the open enrollment period. For some scammers, “open enrollment” apparently means “open season” on seniors and the elderly and their bank accounts.
Let’s take a look at the trickery you might encounter as you try to navigate your Medicare choices.
What are Some Common Medicare Scams?
Medicare scams have been around for years. This is the time when a person might expect a call back from a broker or agent, or they might be more open to a phone call from someone who claims they can help them with the choices. They might also notice the ads online that tell them they can save thousands of dollars or get money back from the government for a variety of things related to Medicare.
Once you agree to a phone call or click on an online ad, you may be on the radar of more than a few unscrupulous people who will begin calling, sending emails, texting you, and otherwise bombarding you with communications you might not want.
And if you do happen to initiate a phone call – specifically, if you call a number listed on one of the television ads that seem to pop up every commercial break – you are often overwhelmed by the volume of calls you get after providing your information to the person on the other end of the line.
Deceptive marketing tactics have become such a serious problem that the federal government stepped in, hoping to curb the misleading ads. Just how bad is the problem? Over 640,000 television commercials aired last year, paid for by private insurers and brokers. The majority of those had misleading or fraudulent claims.
Sadly, those ads are so prevalent because they often work as intended, leading to unsuspecting Medicare recipients paying more out of pocket than they should – or actually being roped into a financial scam that will take their personal information and exploit it.
The Damage Done by Deceptive Medicare Ads
According to the Kaiser Family Foundation, only about a third of seniors actually compare plans during the open enrollment period. And only about half actually looked at their current coverage to see what would change if they stayed with the plan in the following year.2
Feeling overwhelmed by the options is one big reason why seniors choose to not bother looking at the options, even though they might get better coverage and could possibly save money.
That’s one reason why the Medicare ads look so appealing to some. The idea of someone else sitting down to go through their options and narrow them down can feel like a relief. The problem is that the person who is “comparing” those plans for you has an agenda.
The fraudulent ads lean heavily on Medicare Advantage, because it is over twice as profitable for private insurers as any other type of coverage. And while Medicare Advantage can provide excellent benefits for the insured, choosing the wrong plan can lead to higher premiums that waste limited income, lead to lower quality care, and mean more difficulty in getting the prescriptions you need. In addition, you could wind up locked into an option that isn’t right for you, and it can be costly and difficult to undo that choice later.
A bigger problem is that many seniors believe they are talking to someone from the government – fully half of those surveyed about the situation by The Commonwealth Fund said they had received information on a specific plan from the government, but the government doesn’t provide outreach calls.
Of those who responded to the survey, the vast majority had received phone calls concerning Medicare Advantage plans, and many of them reported being asked for their social security number or other personal information. Most of them faced the “one time, limited time” offers that impress urgency in trying to make someone choose a certain plan for savings that never materialize.3
How to Protect Yourself from Medicare Scams
It’s obvious that not everything is as clear-cut as choosing a button alert from Alert1. But there are some ways you can help ensure you get the best help and the best coverage possible for you. Here are some tips to remember.
Understand the role of the insurance broker
Insurance brokers and agents are supposed to help you figure out which Medicare plans are best for you. But there is an inherent conflict of interest in what they do.
Private insurers pay commissions to these agents and brokers of anywhere from $50 to $762 per sign-up. There might be other financial incentives for the brokers who meet certain goals set by the private insurer. That means that it is in the broker’s best interest to push the high-dollar plans, even if those plans don’t provide exactly what you need. It’s also important to remember that brokers are not legally required to present all the available options – they can get away with presenting what they believe is best for you, which might actually be what’s best for them.
Due to these conflicts, you should view your broker as a source of information, but know that they might not provide all the information you need. Your broker should be one stop along the journey to figuring out your Medicare options because they may not be objective.
Look to the Medicare Rights Center
This non-profit organization is staffed with experts who have no financial incentive to do anything other than help you. Their job is to help you compare plans to find the one that’s right for you. They can advise you on how to use the Plan Comparison Tool offered by the federal government to help you with the important decisions on Medicare.
Be wary of “too good to be true” ads
It’s human nature to look for something new and better. While your current Medicare coverage might be sufficient, you could be very curious about the other plans and supplementary options. The ads target that desire for something better, and often verge into the “too good to be true” category.
Words like “most” or “best” can catch your attention, as can the promises of cost savings of a certain amount each month – or even the offer of something that might never materialize, such as discounts or gift cards to use on medical care. If you find yourself thinking that it’s an incredible deal and you need to get in on it right now, slow down – you’re probably being hooked by deceptive advertising.
Use your SHIP
The State Health Insurance Assistance Program provides free, local counseling for Medicare beneficiaries. This program isn’t affiliated with any insurance company and thus, has a more clear-eyed view of what is best for the individual.
They can help you figure out how to keep your beloved doctor, which prescription plans might work best for you, and what supplemental coverage you might need to tackle emerging health issues. They can also help you find very specific coverage options for things like cancer treatment or extensive physical therapy.
Protect your personal information
As with any other scams, it’s important to protect your personal information. Don’t give out your social security number, banking information, or even your Medicare number. Remember that Medicare will not contact you out of the blue and will ever ask for personal information.
Avoid or stop the harassment
When you click on a banner ad, respond to a text message, or even engage with a broker on social media, you have put yourself in the crosshairs of phone calls, emails, texts, and other communication that can quickly verge into harassment.
Refrain from clicking on any links, responding to messages, or answering phone calls from those who are trying to sell you something concerning Medicare. If you do engage, such as answering a phone call, hang up the instant they ask for your personal information.
Preserve your good health
If your health is declining, it can be tempting to look for more coverage and get suckered into the fraudulent promises of the Medicare Advantage ads. If you are facing health issues, it’s important to look at all your options for coverage and change current coverage if necessary. But it’s also vital to do what you can right now to protect your senior whole health.
To that end, keep all your doctor appointments, use your prescriptions exactly as directed, and make lifestyle changes that can help you feel better in every way, such as eating right and exercising often. Keep up with social connections with family and friends.
Choose the right medical alarm for you, whether an on-the-go device with GPS or one that you use when you are at home. And during this Medicare open enrollment period, carve out the time to really look at the plans that could provide you with the coverage you need. Making smart choices can provide you with incredible peace of mind, and that alone can improve your health.
