Medicare scam puts seniors on alert

COLUMBIA -- Creative scammers have found yet another way to bilk seniors.

Lt. Gov. Andre Bauer warns older people to be on the lookout for crooks who want to steal their personal information by pretending to need a Social Security number, a bank account or other information to process a $250 government check to cover the costs of prescriptions through Medicare.

The checks are real and more than 61,000 South Carolinians on Medicare will receive them -- automatically -- to help bridge the gap in the coverage of prescription drugs in Medicare Part D plans, commonly called the doughnut hole. The Centers for Medicare and Medicaid Services remind seniors who have qualified that they don't need to fill out any forms to receive the benefit check.

"The FBI indicates that senior exploitation is so common because these individuals grew up in a kinder, more trusting time, and my advice to them is to be tough on scammers," Bauer said in a statement. "If a stranger calls wanting personal information to update your Medicare records, hang up -- the government already has your information and would contact you in writing if additional information is needed."

Bauer's office has not been notified of any reports of scammers who have tried to victimize South Carolina seniors, so far.

The one-time checks, which are tax free, are being issued by the Centers for Medicare and Medicaid Services. The money for the checks comes from the Affordable Care Act that President Obama signed earlier this year.

Seniors in the "doughnut hole" must pay out-of-pocket for prescriptions after their annual drug costs have reached $2,830. Coverage picks back up after their drugs have cost $6,440, according to Bauer's office.

Low-income beneficiaries in the Medicare Extra Help program already have assistance with the cost of prescription drugs and will not receive the checks. For others, the Explanation of Benefits notice, which is mailed to Medicare recipients each month, tells how much prescription drugs have cost and whether the cost has reached the coverage gap.

Bauer said the rebate checks are a first step designed to eliminate the doughnut hole by 2020. Next year, seniors with Part D coverage will receive a 50 percent discount on brand name drugs and a 7 percent discount on generic drugs. After 2020, seniors should expect to pay 25 percent of their drug costs after meeting their deductible, according to Bauer.