While the Affordable Care Act, aka Obamacare, has been an ongoing topic in the news media for months now, there continues to be a fair amount of confusion and misinformation about its features, rules and timelines. This knowledge gap has opened the door for that continually evolving element: scammers. As 16 states, the District of Columbia and the Federal government opened their insurance marketplaces or, “exchanges” on October 1, there were already bogus sites running and “helpers” masquerading as government officials hoping to cash in on the largest regulatory overhaul of healthcare since Medicare was implemented in the 1960s.   

Senior citizens are especially vulnerable to scams surrounding the new healthcare law as surveys have shown that many are unsure of how Obamacare impacts their Medicare eligibility or enrollment. The new law does not affect Medicare, except that by 2020, the gap in prescription drug coverage that increases out-of-pocket costs, called the “doughnut hole” will be eliminated. It is already being reduced.

According to the Coalition Against Insurance Fraud, some scam artists, posing as government officials, are telling seniors that Obamacare requires them to have a new Medicare card. They then ask the senior for verification of the bank account, credit card and social security number. Or the scammer may try to sell the senior “Obamacare” insurance. Seniors with Medicare already have insurance, so they don’t need any additional insurance as the result of Obamacare. Other scammers are threatening seniors – and others – that if they don’t have insurance under the new law by January 1, 2014 that they will go to jail.

To protect yourself and your aging loved one against healthcare scams, follow these tips:

1. Don’t give any personal or financial information to people who make unsolicited calls or visits and demand that information. Reputable sources will not use these tactics.
2. Don’t believe anyone who threatens you with a fine – or jail time – if you don’t have insurance. Those under 65 who do not have insurance by January 1, 2014 will be subject to a penalty, but it will be assessed on their tax return.
3. If you are under 65 and signing up for insurance via an exchange, be sure you are using a legitimate site. In California the state-run site is coveredca.com.  Residents of states who’ve chosen to use the federal exchange can go to https://www.healthcare.gov/
4. Review your bank account and credit card balances regularly and look for questionable transactions. Notify your bank or credit card company immediately.

Daily Money Managers, like me, make it a part of our practice to continually monitor our clients’ accounts, records and transactions. which is another way to protect yourself and the seniors in your life from scams and fraud.

Finally, if you or your loved one has been the victim of a scam, report it to the ocal police, your state’s Department of Consumer Affairs or the Federal Trade Commission.