Americans searching online for Medicare information are being warned not to assume the first result is legitimate, as scammers increasingly pay to place ads at the top of search results.
The Federal Trade Commission issued a new warning ahead of Medicare Open Enrollment, which runs from October 15 to December 7, saying health insurance scams occur year-round but increase during Medicare and Health Insurance Marketplace enrollment periods. The FTC cautioned that bad actors sometimes buy prominent search placement and create websites specifically designed to resemble official government pages.
“They also use keywords and official-looking logos to make you think you’re at the real Healthcare.gov or Medicare.gov when you’re not,” the FTC said on its website.
“If you use the link or phone number in the ad, you might end up paying for a scammy plan that’s not health insurance, or expose yourself to medical identity theft."
Why It Matters
Medicare scams can have consequences that extend far beyond losing money. The FTC said in May that fraud, errors and abuse cost taxpayers about $60 billion annually. The fraud can also contribute to medical identity theft, leading to lost benefits and higher medical costs.
These schemes include some providers billing twice for the same treatment, charging Medicare for medical equipment a beneficiary never received or needed, or even selling fake Medicare drug plans.
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What To Know
The FTC's latest alert warns that Medicare scammers pay to rank at the top of search results.
"Scammers and dishonest businesses sometimes pay to appear at the top," the agency said.
The FTC issued a similar warning in June, telling people seeking health insurance or information about government health programs such as Medicare that dishonest businesses sometimes buy ads at the top of results that resemble official government websites.
The advertisements are often intended to trick people into providing personal information, paying unnecessary fees or enrolling in misleading services.
“The scary part of this scam is how ordinary it starts. Someone searches for Medicare, clicks the first result, and assumes they've reached the government. Scammers pay for that position, copy familiar logos, and make the whole thing look so official,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
“They don't have to hack Medicare. They just have to catch someone on the way to it.”
How To Avoid Medicare Search Scams
The FTC recommends several precautions:
- Go directly to Medicare.gov. The FTC identifies Medicare.gov as the official site and says beneficiaries can alternatively call 800-633-4227 or 1-800-MEDICARE.
- Look for "Ad" or "Sponsored." Those labels indicate someone paid for the placement, according to the FTC.
- Check for ".gov." The FTC advises consumers to scroll past paid ads and verify they are on a government website.
- Don't rush. The agency specifically advises consumers to take their time before selecting a search result.
Medicare beneficiaries can also seek help comparing costs, coverage and plans through their State Health Insurance Assistance Program or their local Senior Medicare Patrol.
Keep in mind, Medicare will never call or visit someone's home unexpectedly to sell them something.
“When it comes to Medicare plans, the important rule to remember is when in doubt, always checking Medicare's official website,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“There, you will find a comprehensive listing of every partner program and approved plans in your area. The problem is some of those who qualify do a quick online search, and, more frequently, some of the top results are actually tied to scams meant to obtain your data.”
What Medicare Fraud Can Look Like
Medicare fraud isn't limited to fake enrollment sites.
You may also encounter allegations of double billing or charges for medical supplies you didn't receive. In some cases, scammers use fake drug plans or attempt to obtain your Medicare number for fraud.
“With open enrollment here, people are already worried about choosing the right coverage and missing deadlines. Scammers exploit that uncertainty. A fake website might sell them something that isn't real health insurance, steal their Medicare number for fraudulent medical claims, or steer them into coverage they never intended to buy,” Ryan said.
“And the damage doesn't always end with losing money. Imagine finding medical claims you never made or discovering your coverage isn't what you thought it was when you need care.”
Generally, review your Medicare statements for unfamiliar charges or inconsistencies.
What To Do If You Suspect a Scam
Health insurance scams become more prevalent during enrollment periods, so users should go directly to Medicare.gov rather than relying on whatever the first search result is. People who suspect a Medicare scam can report it through Medicare.gov or by calling 1-800-MEDICARE.
“It's pivotal to take some additional time to always verify the source you're going through, as many scams are getting increasingly sophisticated and using official-looking logos and information to draw in unsuspecting customers,” Beene said.
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.
Contact Newsweek editors on this story: Jason Lemon and Sam Wilson.