FBI warns of
Medicare fraud

Officials say a new prescription
program could lead to more
attempts to steal IDs

Hawaii Medicare recipients should watch out for fraud schemes expected to crop up with the new Medicare Part D Prescription Drug Plan, officials warn.

Fraud watch Seniors on Medicare are warned to: » Beware of people who go to their home uninvited to sell or endorse any Medicare-related product. » Beware of people who offer a "free gift" for their enrollment in a Medicare Prescription Drug Plan in exchange for their Medicare or Social Security number.

Companies will begin marketing Medicare Prescription Drug Plans on Friday, but enrollment in plans can't start until Nov. 15.

"There are going to be people jumping on the bandwagon doing fraudulent schemes that have nothing to do with the program," said Gregory J. Gilmartin, supervisory special agent in the Honolulu Division's White Collar Crime/Health Care Fraud Unit.

He said he has been to several conferences about potential fraud problems.

"The reason we are concerned about this and meeting on it is we know it's going to be fraught with fraud, and there is not a lot of oversight about these companies allowed to throw their hats in. That's what concerns us the most."

Medicare recipients are advised to be aware of the prescription drug program's benefits and enrollment dates and how to protect themselves from identify theft.

The FBI strongly advises people receiving Medicare benefits to protect their Medicare number and personal information.

Residents are urged to call the FBI Honolulu Division's Health Care Fraud Hotline at 566-4232 to report anything suspicious. They can leave a confidential message, and an FBI special agent will contact them for an interview.

Recent changes to the Medicare system coupled with the new prescription drug benefit might result in confusing and misleading information, said Pat Sasaki, Executive Office on Aging director.

About 12 companies are expected to offer about 25 different stand-alone plans in Hawaii, Jeff Flick, regional administrator of the Centers for Medicare and Medicaid Services, recently told the Star-Bulletin. Some companies will be new to Hawaii, he said.

Premiums and benefits will differ from plan to plan.

Residents are encouraged to call the Executive Office on Aging's SageWatch Program -- 586-7281 or toll-free at 800-296-9422 -- with any questions or concerns about fraud, medical services or billings.

Sasaki said the Social Security Administration contracted with NCS Pearson Inc., and its partner, West Corp., to conduct follow-up telephone calls to Medicare recipients who didn't respond to an Application for Help with Medicare Prescription Drug Plan Costs.

Janice Okubo, spokeswoman for the state Health Department, said representatives from both companies will not be asking people for personal information, as the Social Security Administration would already have that information. They instead will be calling to confirm whether recipients have received the proper forms, Okubo said.

Only those companies and the Social Security Administration are authorized to call Medicare recipients and offer program assistance.

Gilmartin said the FBI is concerned that confused seniors will reach out for help to anyone offering it and become fraud and scam victims.