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Medicare '$299' Telephone Scammers Ask for More Money

BALTIMORE--A scam asking Medicare beneficiaries for money to enroll them in a nonexistent prescription drug plan has changed into a higher-priced scam, CMS said.

The scam--which targets seniors and people with disabilities--was originally known as the "$299 Ring" for the typical amount of money beneficiaries are talked into withdrawing from their checking accounts (see HomeCare Monday, March 13). The amount now requested by phone callers is usually $379, but in some cases is $350 or $365.

In the new scams, CMS said that callers ask for bank information or tell beneficiaries they can provide a new Medicare card for a fee. As with the "$299 Ring," callers ask Medicare beneficiaries for bank account numbers that they then use to withdraw money electronically.

Callers may use the names of fictitious companies, such as Pharma Corp., National Medical Office, Medicare National Office and National Medicare.

No Medicare beneficiary should ever provide a bank account number or other personal information to someone who calls them, CMS said.

Medicare has already referred nearly 250 cases involving attempts to steal beneficiaries' money to federal law enforcement officials. Consumers can report these cases to their local police departments or call (877) 772-3379.

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