I received a text from a Medicare client that said if he didn’t respond to the text immediately, he would lose his insurance. Obviously, my client was concerned and sent it to me.
I called pretending to be him and was told that I’d reached the U.S. State Department. The State Department doesn’t cover Medicare or insurance, and this clearly was a scam. While this scam is easy to see through with my agent eyes, many retirees fall for these misleading texts, emails, and other scams daily – especially ones that create fear and urgency.
Even legitimate insurance agencies have come under fire for their Medicare marketing tactics. Some of the largest call centers in the nation have used the Joe Namath and JJ Walker ads for years. One thing that Medicare insurance agents can all agree on is that many of the ads for Medicare Advantage have been wildly misleading. It’s made our job harder.
It’s not just the TV ads that have caused complaints to Medicare to soar. You might see a full-page ad in your newspaper that said you should hurry to claim your “Medicare Food Card” or mailers that listed “Earn $100 back for your Medicare Part B” – only to call the number in the ads and find out that these benefits are not available in your county.
I’ve seen many ads over the years advertising benefits that were not available in any part of Indiana. We complained. You complained. After many years, the government has finally responded. Starting Sept. 30, ads cannot use that type of bait and switch tactic.
Now, if a benefit is mentioned, it must be a specific benefit that is actually available in this state where it is advertised. The insurance company that offers it must be listed by name. New rules also impact direct mail that you’ll find in your mailbox. No longer can companies “impersonate” the federal government with mail that looks like it is from the federal government.
Use of the Medicare card image is also regulated and will be curtailed if found to be misleading. In the past, disclaimers were required but they were in such small font that it was hard to read. Now the size and location of the disclaimers should be the same size as the ad.
This is a game of whack-a-mole as bad actors will always try to skirt the rules, but we expect fewer misleading ads targeting retirees. Notice I didn’t mention the word “Seniors.” That is because the government now prohibits that term as it doesn’t include those on Medicare under the age of 65 due to disability.
If you receive scam calls, texts, or emails, you can call 1-800 Medicare to report them. If you keep complaining, the regulators will listen.
Sylvia Gordon is co-founder of The Medicare Family, headquartered in Noblesville, where she educates thousands on Medicare and Social Security in all 50 states. You can learn more at TheMedicareFamily.com.