An expose of bad businesses and their unethical practices

Con artists are taking advantage of the confusion surrounding the new Medicare program, reports the Visalia Times Delta.

Less than five months after Medicare Plan D took effect, con artists already have found a way to use the program to scam people.

"It's called the $299 scam," said Jack Cheevers, a spokesman for the San Francisco Centers for Medicare and Medicaid Services.

Con artists are taking advantage of the confusion and frustration among the 43 million people eligible for the complicated prescription drug program, Cheevers said. The scammers know that insurance companies are doing a lot of Plan D advertising, including phone solicitations trying to get senior citizens and disabled adults to sign up to receive prescription drug benefits.

Their hook is the simplicity of their offer: a flat rate of $299 without any co-payments, deductibles, or periods without coverage.

" 'Just send us a check for $299 and you're all set,' " Cheevers said, quoting the pitch. But victims aren't getting a thing.

So far, only a few reports of the scam have surfaced in the South and Midwest, Cheevers said. But that may not last long.

"If there's a way to scam, there's always going to be somebody out there looking to obtain something in a fraudulent manner," said Carole Turner, assistant district attorney for Tulare County.

She added that she's heard no reports of Plan D-related scams in this region. Nor has Cindy Dudley, director of member services for the Better Business Bureau of the San Joaquin Valley.

What she has heard are reports of high-pressure sales tactics by insurance providers.

Also, she said, promises are being made for services that that aren't delivered.

"Don't take verbal promises," Dudley warned, adding that people signing up for the Medicare prescription plan — or family and caregivers acting for them — should read the plans and make sure what was promised is in the contracts.

If a drug plan seems suspicious or too good to be true, Cheevers suggests calling (800) 633-4227 and discussing it with a Medicare specialist. Some of these situations may involve con artists. which may result in law enforcement getting involved. Others may involve companies that are authorized to provide Medicare plans but are working outside the program rules.

"We just hope it's as fraud-free as possible," Cheevers said. "But there are people out there willing to take advantage of old people."

Con artists are taking advantage of the confusion and frustration among the 43 million people eligible for the complicated prescription drug program, Cheevers said. The scammers know that insurance companies are doing a lot of Plan D advertising, including phone solicitations trying to get senior citizens and disabled adults to sign up to receive prescription drug benefits.

Their hook is the simplicity of their offer: a flat rate of $299 without any co-payments, deductibles, or periods without coverage.

" 'Just send us a check for $299 and you're all set,' " Cheevers said, quoting the pitch. But victims aren't getting a thing.

So far, only a few reports of the scam have surfaced in the South and Midwest, Cheevers said. But that may not last long.

"If there's a way to scam, there's always going to be somebody out there looking to obtain something in a fraudulent manner," said Carole Turner, assistant district attorney for Tulare County.

She added that she's heard no reports of Plan D-related scams in this region. Nor has Cindy Dudley, director of member services for the Better Business Bureau of the San Joaquin Valley.

What she has heard are reports of high-pressure sales tactics by insurance providers.

Also, she said, promises are being made for services that that aren't delivered.

"Don't take verbal promises," Dudley warned, adding that people signing up for the Medicare prescription plan — or family and caregivers acting for them — should read the plans and make sure what was promised is in the contracts.

If a drug plan seems suspicious or too good to be true, Cheevers suggests calling (800) 633-4227 and discussing it with a Medicare specialist. Some of these situations may involve con artists. which may result in law enforcement getting involved. Others may involve companies that are authorized to provide Medicare plans but are working outside the program rules.

"We just hope it's as fraud-free as possible," Cheevers said. "But there are people out there willing to take advantage of old people."

Cheevers said that providers must follow tight regulations. For example, they may call or mail literature to people's homes but they can't knock on doors selling Plan D plans unless invited.

Penalties for violating Plan D regulations can range from civil fines to ejection from the program, Cheevers said.