Following Up on the Senior Scams Article

Last week we discussed some new rules to help protect Medicare recipients from being pressured and/or cheated when it comes to signing up for coverage in addition to their basic Medicare coverage.  We mentioned that there are some new rules that have been put in place to stop the practice of preying on vulnerable seniors.  At that time we explained that sales people and agents could no longer cold call, nor could they drop by or hang around at clinics and doctors’ offices to try to get people to sign up for additional benefits.

There is more protection as well.  Not only have unsolicited calls been banned, so have door-to-door visits.   Agents cannot camp out in parking lots of assisted living centers, hospitals and nursing homes.   Also, there is a limit of $15 on any gifts that agents or sales people can give potential clients.  They can no longer take potential clients out to expensive meals or treat them to other expensive gifts.  

One of the tougher restrictions on agents and sales people who would try to pressure individuals into signing up for coverage just so that the agent can make a quick commission is a change in the way that the commissions will be paid.  No longer will it be easy for these insurance people to switch Medicare recipients from policy to policy each year just to get a nice commission, even if the coverage is not best for the individual.  New rules will go into effect later this year with restrictions.  This is extremely important because commissions usually average between $300 and $500 per policy, which is a large incentive for unscrupulous agents.

As we have noted, it can be very difficult for elderly individuals to compare the many combinations of policies and coverage available.  In addition, these unethical agents target the poor, just to make a quick commission, without regard to which coverage is best for them.

Congress is trying to continue making it more difficult for dishonest agents to take advantage of unsuspecting Medicare recipients.  The states are also trying to become more involved in investigating extreme cases of abuse. 

If you are a Medicare recipient and you feel you have been targeted by a dishonest agent or you have bought a policy that does not meet your needs without realizing it, contact 1-800-MEDICARE or www.CMS.com or
www.MEDICARE.com ,