CONSUMER ALERT

MIKE COX

ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.

MEDICARE RECIPIENTS WARNED TO BEWARE OF MEDICARE FRAUD AND IDENTITY THEFT

The Attorney General's Office has recently learned of fraudulent activities in other states involving Medicare benefits.  The fraud involves door-to-door solicitations by people posing as Medicare authorized representatives.  The persons offer seniors assistance in filling out Medicare forms related to the new Medicare prescription drug benefit that will begin in January 2006. 

MEDICARE PART D

Under a new federal law called the Medicare Prescription Drug Improvement and Modernization Act of 2003, Medicare recipients or those eligible for Medicare benefits will be able to enroll in a prescription drug benefit plan through Medicare.  The benefit is called Medicare Part D.  Prescription drug plans that have federal government approval to offer Medicare Part D drug benefits have been authorized to advertise their plans beginning October 1, 2005.  Medicare recipients may enroll in Medicare Part D as of November 15, 2005.  Initial enrollment will run through May 15, 2006.  The drug benefit plans will take effect on January 1, 2006, for those who enroll by December 31, 2005.  Each plan is unique, both in terms of the prescription drugs it covers and with respect to the monthly co-payment amount.

People who have Medicare coverage already will not necessarily be automatically enrolled in the prescription drug insurance plan.  Those consumers will first need to choose a health plan that best suits their needs and then enroll in that plan to get prescription drug coverage. 

To verify whether a plan is approved, consumers may call Medicare's toll-free number at 1-800-633-4227, TTY 1-877-486-4028, or they may use the Medicare Prescription Drug Plan Finder on www.medicare.gov.

FEDERAL GOVERNMENT'S  EFFORTS TO INFORM MEDICARE RECIPIENTS ABOUT MEDICARE PART D

From May through August, the Social Security Administration mailed application forms to people with Medicare who may qualify for extra help with drug plan costs.  Almost half of Medicare recipients should have received an application for extra help.  The Social Security Administration may ask for general financial information on the extra help application form, but it will never ask for specific bank account numbers. 

In early October 2005, the Centers for Medicare and Medicaid Services (CMS) mailed Medicare recipients a handbook entitled "Medicare & You 2006".  This handbook provides important information regarding Medicare Part D, and the plans that have received federal governmental approval.  It contains valuable information that Medicare recipients may find useful when they are choosing a Medicare Part D plan that best suits their individual needs. 

MEDICARE & YOU 2006 HANDBOOK ERROR AND CORRECTION

Medicare recipients who need and qualify for extra help paying for Medicare prescription drug coverage are advised that the "Medicare & You 2006" Handbook contains an error potentially affecting them.  On Page 97-A of the handbook, there are a series of charts listing the Medicare Prescription Drug Plans.  The last column of these charts is called "If I qualify for Extra Help, will My Full Premium be Covered?"  Due to an error, this column lists "Yes" for every plan.  Not all of the plans listed will be available without a premium charge.  Medicare will correct this chart and actual premium amounts for the plans will be available after October 17, 2005. 

READ MAIL CAREFULLY

In general, it is important for all Medicare recipients to carefully read any mail they receive from the Social Security Administration or CMS during the implementation of the new Medicare Part D prescription drug benefit. 

MICHIGAN'S MEDICARE MEDICAID ASSISTANCE PROGRAM ANSWERS QUESTIONS

If consumers have any questions related to Medicare Part D, or other Medicare or Medicaid questions, they should contact: 

            MICHIGAN'S MEDICARE MEDICAID ASSISTANCE PROGRAM

            (MMAP) toll free at 1-800-803-7174.

FRAUD REPORTS FROM OTHER STATES

Scam artists are taking advantage of seniors who either do not know about the new Medicare benefit or do not know the details of when and how to get signed up for Medicare Part D.  Using the new Medicare benefit as a cover, scam artists go door-to-door and some seniors have unwittingly shared personal information, such as their Medicare number (which includes their Social Security Number), birth dates, and other personal information.

Constant vigilance against identity theft is necessary.  For detailed information on identity theft and prevention techniques, consult the Attorney General's consumer alert entitled "Identity Theft Information for Michigan Consumers - 2005 Update."  http://www.michigan.gov/ag/0,1607,7-164-34739_20942-80479--,00.html

MEDICARE RULES

The Centers for Medicare and Medicaid Services (CMS) have marketing rules for Medicare Part D.  Awareness of these rules helps protect you from becoming a Medicare fraud victim.

Medicare Prescription Drug Plans

• Can't begin marketing their products until October 1, 2005.

• Can't begin enrolling people with Medicare Part D until November 15, 2005.

• Will have the following "Medicare-Approved" seal on their materials:

People Who Really Work With Medicare

• Can't come to your house uninvited to sell or endorse any Medicare-related product, but they can call you on the phone to tell you about their plan.

• Can't enroll you into a drug plan or ask you to pay for a drug plan over the telephone, unless you are adding prescription drug coverage to a Medicare Advantage Plan or other Medicare Health Plan you already have. 

• Can't ask for payment over the internet.  The plan must send you a bill if you enroll online.

COMPLAINTS

Medicare recipients who have been improperly solicited by a potential scam artist or who believe someone has broken any of Medicare's rules should immediately contact Medicare by calling 1-800-633-4227.  You may also report potential fraud to the Attorney General's Consumer Protection Division at:

        Consumer Protection Division
        P.O. Box 30213
        Lansing, MI 48909

        517-373-1140
        Fax: 517-241-3771

        Toll free: 877-765-8388

        www.michigan.gov/ag (online complaint form)