Monday, May 15, 2006

Seniors a magnet for health care scams

Donna Cardarelli, 78, gets $40 whisked out of her social security check, every month, for an insurance policy she says she never ordered. She is a victim of a scheme that officials say is widespread: unscrupulous insurance salesmen, taking advantage of Medicare’s new prescription drug benefit to defraud elders.

Cardarelli said this January, a third-party salesman offered her assistance signing up for a prescription benefit called Common Care. Instead, he signed her up without her knowledge for an over-priced insurance plan. Cardarelli has paid premiums for that plan out of her Social Security check for five months.

"I have been up to 11 at night. I have been on the phone waiting for these people," said Cardarelli, 78. Ohio-based Insurer Member Health says they have unenrolled Cardarelli from their Common Care plan, Bernardi said. But Social Security continues to deduct the payments.

"She’s not the only one," said Andrea Centola, director of compliance and regulatory affairs for Member Health. Centola said there is a time lag between insurers’ records, Medicare records and Social Security records.

Bernardi said a massive enrollment occurring all at once this year has left insurance companies short-staffed. Seniors looking to subscribe were unable to get what they need directly, and third parties have stepped into the breach, he said.

Local Medicare officials said it has created fertile ground for fraud. Seniors have always been targets for similar scams, but confusion over medicare has provided con men with a new opportunity.

The rules seniors should follow are the same in this case as in any other: seniors should not give out personal data or bank information via phone, unless they initiated the call.

Information brought to you by the http://seniormoney.blogspot.com

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