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Medicare ripoff schemes starting already
Government says it's working to prevent fraud as drug benefit marketing gets under way
Saturday, October 08, 2005

Marketing for the new Medicare prescription drug benefit has just begun, yet rip-off schemes have surfaced already.

In response, the federal government yesterday announced that it is working with private firms and local law enforcement agencies to prevent fraud and abuse. It also offered tips on how seniors can protect themselves.

Dr. Mark B. McClellan, the administrator of the Centers for Medicare and Medicaid Services, said during a news conference in Washington, D.C., that eight companies -- including the IT firm founded by former presidential candidate Ross Perot -- have received contracts to help the government fight fraud.

Schemes in West Virginia and Illinois that involved telephone solicitations have been uncovered already, said Dr. McClellan. In both cases, people claiming to sell prescription drug plans sought financial information from Medicare beneficiaries.

Dr. McClellan stressed that firms approved to sell prescription drug benefits cannot ask for personal information during their marketing activities.

"Make sure you're taking advantage of the benefit, and not being taken advantage of yourself," he said.

Pennsylvania officials have an ongoing investigation into a company in the southeast corner of the state that reportedly has been selling a drug discount card that is not part of the government's program, said Kevin Harley, spokesman for Attorney General Tom Corbett.

Called Part D for short, the new Medicare prescription drug program makes available government-backed prescription drug benefits that are sold to individuals by private companies. Consumers can begin signing up for Part D plans on Nov. 15 and coverage starts Jan. 1.

Marketing efforts began Oct. 1.


Consumer protection tips

Protect all personal information, including your Medicare number. Don't give out your personal information, such as Social Security number, bank account numbers or credit card numbers. Plans are not allowed to request such personal information in their marketing activities. They can't come to your home uninvited and can't ask for payment over the Web. They must send you a bill.
Look for the seal. Medicare prescription drug plans will have a "Medicare-Approved" seal on their materials.
Timing is key. Medicare Prescription Drug Plans can't begin enrolling people with Medicare until Nov. 15.
Know the "enrollment rules." You can call, mail or enroll online -- so you can control your information.
If you think someone is misusing your personal information, call:
1-800-MEDICARE (1-800-633-4227) (TTY users should call 1-877-486- 2048), or the Fraud Hotline of the HHS Office of the Inspector General at 1-800-447-8477 (TTY users should call 1-800-377-4950)

First published on October 8, 2005 at 12:00 am
Christopher Snowbeck can be reached at csnowbeck@post-gazette.com or 412 263-2625.