Telephone scammers lurk behind area code 876 | New Hampshire NEWS03

Telephone scammers lurk behind area code 876

By PAT GROSSMITH
New Hampshire Union Leader
July 26. 2012 10:40PM

MANCHESTER — The 76-year-old retired airline pilot was meticulous about his money so family and friends were dumbfounded to learn he was bilked out of $85,000 by a friendly Jamaican woman who told him in repeated telephone calls that he won a lottery.“That’s the amount we know of,” his daughter, Kim Nichols of Maine told about two dozen residents who gathered Thursday at the William B. Cashin Senior Activity Center.

She was one of the speakers at a presentation by FairPoint Communications, the New Hampshire Attorney Genera’s Consumer Protection Bureau, AARP New Hampshire and law enforcement to make people aware of telephone scams originating from the Jamaican 876 area code almost exclusively targeting seniors.

Pat McHugh, FairPoint New Hampshire state president, told the seniors the telephone scams are “dangerous and pervasive.” FairPoint launched the “Beware: Scams from Area Code 876” in late March and created a website, http://www.bewareof876.com, providing tips on how now to avoid becoming victims. Each day, 30,000 calls are made from Jamaica to the United States in attempts to defraud American citizens, according to the phone company.

The news conference was prompted by the case of Nichols’ father, who was bombarded with telephone calls from scammers from February until mid-June. Nichols called it a form of brain-washing, where a woman name Diane with a heavy Jamaican accent came to befriend her father, so much so that he came to love her, but not in a romantic sense.

Nichols said the calls began in February when a Jamaican caller told him he won a car and all he needed to do was send some money to cover processing fees and taxes. Once he sent the money, however, the calls came pouring in of other supposed winnings. No prize was ever delivered, however.

In February, Nichols happened to see a news report about the scam and then she, too, started receiving phone calls — about 100 in 1½ months — from someone with a foreign accent looking for an Agnes Nichols. She happened to mention the scam to her father when she visited him at his Ossipee home and, she said, he became very quiet. He told her he had received a call from Publisher’s Clearinghouse saying he had won a car and he paid $500 to transport it up from Washington, D.C. He said the bank helped him get the money back.

In April, Nichols went to stay with him while he recovered from surgery. As soon as they got home from the hospital, she said, the phone started ringing off the hook. She heard her father yelling on the phone that he was not going to send the caller any more money, that he had just got out of the hospital and was in a lot of pain. He said he didn’t want to talk to whoever was on the phone and that he wanted to talk to Diane.

Minutes later, Diane called and Nichols got on the telephone to talk to her. Diane said her father had won the lottery and he just needed to transfer some money for the taxes. Nichols asked for the company’s website address so she could check it out but Diane said her their computer was down.

Nichols talked with her father and told him he needed to understand it was a scam. They called Fairpoint, were put in contact with its security team, changed the telephone number and notified police. Her father would not tell her how much money he had sent, but at that point, Nichols said, it was about $20,000. Later, her dad called Diane back to thank her for talking to his daughter.

She thought everything was OK until later in the year relatives gathered in Cape Cod for a family wedding and she overheard her father yelling at somebody on his cell phone. This time, it was a totally new group of people trying to get money out of him. Diane, however, was still in the picture. Diane, her father said, had left the other company and he confessed he had sent her money because she was going to lose her job. Nichols could not convince her father that it was a scam.

So, the family staged an intervention bringing in FairPoint Security, an investigator with the York County, Maine Sheriff’s Department , herself and her brother. The investigators showed him what happened to an elderly Maine woman who also was told she won millions in a lottery. She was taken for $150,000.

“Last night I went to bed. Three, 4 o’clock I was still awake and I was in bed crying. I didn’t know what to do. I don’t have any money coming in. I have the tax bill. The bills are coming in. I don’t have any oil. I am freezing here. I’m getting cold now. I can’t warm up my home,” she sobs in the actual call from the scammer that can be heard at http://www.bewareof876.com .

Nichols said her father is lucky. He still has his house and retirement, unlike the Maine woman who filed for bankruptcy.

Authorities said if you have not entered a contest and someone calls saying you have won a lottery or some other prize, odds are it is a scam.

Authorities advise people with caller ID to not answer any call from the 876 area code, unless they know the number is from someone they know. The attorney general also has a hotline, 888-468-4454, residents can call to report incidents.

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Pat Grossmith may be reached at pgrossmith@unionleader.com.

Maine Sunday Telegram follow up story published March 10, 2013

“On Wednesday, the issue will get congressional attention during a hearing before the Senate Select Committee on Aging. The problem is national in scope but appears to be heavily focused on Maine, New Hampshire and Vermont, three states with among the oldest populations in the country.”

U.S. Senate Special Committee on Aging link.

Protect yourself against Medicare/Medicaid fraud

CONSUMER FORUM

Russ Van Arsdale, Executive Director

Northeast CONTACT

Posted March 09, 2013, at 2:45 p.m.

 State and federal officials paid a visit to Bangor last week to educate seniors about the fraud problem in the Medicare and Medicaid systems. The FBI estimates the cost to taxpayers at $60 billion to $80 billion annually.

There’s a big price for those crimes, and we all pay. As Raymond Hurd, Acting Regional Administrator for the Centers for Medicare and Medicaid Services, said last week in Bangor, federal officials recovered four billion dollars in fraudulently obtained funds last year. But crooks are getting away with many billions more, and exactly how much is subject to various estimates.

“Fraud is fairly pervasive,” said Michael Miller, director of the Healthcare Crimes Unit of the Maine Office of the Attorney General since 2007. Miller is heading up a working group that’s reviewing policies and practices — including the ways health care providers are enrolled in the federal systems — with an eye toward curbing fraud.

Hurd and Miller were members of a panel at the Hammond Street Senior Center Wednesday. Also on the panel were Susan Waddell, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations for the Northeast; and Betty Balderston, Maine Coordinator of the Senior Medicare Patrol. BDN Reporter Nick McCrea wrote about the meeting, but the messages on fraud prevention bear repeating.

Panelists agreed that consumers make up the first line of defense in fighting Medicare and Medicaid fraud. They advised seniors to guard their Medicare numbers (which, in many cases, are the same as a recipient’s Social Security number and are therefore a draw for identity thieves). They also advised that seniors call their healthcare providers in cases of questionable billing items, especially when such “billing errors” happen repeatedly.

In an interview, Balderston offered these tips for seniors to avoid becoming victims:

1. Never provide your Medicare or MaineCare numbers, bank account numbers or any other personal information to someone you don’t know who calls you on the phone or sends you an email.
2. Review your Medicare statements. Make sure the services and supplies that Medicare paid for were services and supplies you actually received. Use a Personal Health Journal to record your services, supplies and medications. Booklets are free from your local Area Agency on Aging.
3. When you have a question about anything your health care provider billed to Medicare, MaineCare or other insurance, call your health care provider.
4. If you believe your Medicare number has been used to commit fraud, contact 1-800-Medicare. If you believe your MaineCare number has been used to commit fraud, contact the MaineCare Fraud Control Unit at the Maine Attorney General’s Office at 207-626-8870. If you need assistance making a complaint, contact the Maine Senior Medicare Patrol at your local Area Agency on Aging at 1-877-353-3771.

An investigation in the news recently involves allegations that one or more manufacturers of power scooters are ripping off Medicare; that investigation is ongoing.

You might be eligible for a reward of up to $1,000 if you report an instance of fraud that is verified. Visit www.stopmedicarefraud.gov for details.

Remember, every dollar scammed from Medicare or Medicaid is a buck that can’t be spent on real health care needs. And that’s a crime.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Russ Van Arsdale, Executive Director, Northeast CONTACT

Watch out for the scammers poaching veterans’ pensions

CONSUMER FORUM

By Russ Van Arsdale, Northeast CONTACT
Posted March 03, 2013, at 9:46 a.m.
Last modified March 03, 2013, at 11:27 a.m.

Consumer watchdogs are warning veterans and their families of scam attempts centered on pensions. The Federal Trade Commission issued a warning recently about one scheme urging veterans over age 65 to convert their assets to a trust or to put their money in insurance products.

The pitch is that veterans who do so can qualify for Aid and Attendance benefits; those payments cover expenses for veterans and family members who need in-home care. The FTC warns that the transactions might mean the veteran loses eligibility for Medicaid services or that their money could be tied up for an extended period of time.

And, in spite of the scammers’ claim that they’re offering “free” advice and help with paperwork, they charge victims hundreds or even thousands of dollars while ripping them off.

Here’s how the scheme works. Unscrupulous lawyers and financial planners visit long-term residential facilities, senior centers and other places to make their pitches. They might offer lunch or snacks or claim to be veterans to gain others’ confidence. They will almost always turn on the high-pressure tactics to get you to put your money into a trust or buy an annuity (and the more they sell, the higher their commission).

The FTC reminds veterans that it’s free to apply for benefits. If you need help, check with the Veterans Administration; the agency has accredited professionals to assist those who need help. While the VA does not endorse financial products or plans, accreditation is a good starting point.

You can also check with agencies that regulate various professions:

• Insurance agents: Maine Bureau of Insurance can tell you if the seller is licensed.

• Financial planners: The National Association of Personal Financial Planners can give you names of planners who work on a fee-for-service basis, rather than on commission based on what you buy.

• Lawyers: Check with the Maine State Bar Association to see if a lawyer is licensed or if charges of ethical violations have been filed.

Nonmilitary folks may be targets as well, and they could be living anywhere. A Web search for investment help by U.S. citizens living abroad turned up this bit of verbiage: “We have a great experience in this field because pension transfer specialists are into ourfolds (sic) for providing you the best tips for pension investment in the home country.” Such awkward grammar is often a sign of a scam attempt.

Whether you’re a veteran or not, the best defense against someone who offers to poach your pension to “get you a better deal” is a firm “no, thanks.” Maine Securities Administrator Judith Shaw noted recently that “safe investing” resources for all Maine families are available on the Office of Securities’ website, www.investors.maine.gov, or by calling 1-877-624-8551 (TTY: Please call Maine Relay 711).

Shaw added, “To avoid investment fraud and invest as safely as possible, investors should make a rule to always check the credentials of any investment adviser or broker before entrusting money to them.” To file a complaint with the FTC, visit the agency’s online “complaint assistant,” www.ftccomplaintassistant.gov, or call 1-877-FTC-HELP (1-877-382-4357).

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

To prevent identity theft, guard your Social Security number

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT

Posted Feb. 17, 2013, at 3:12 p.m.

Almost everything you read about preventing identity theft advises that you guard your Social Security number, or SSN, like gold. Why, then, do some agencies insist that you carry certain documents containing your SSN everywhere you go? And as one local consumer asked us, why when you call some companies does everyone who answers the phone need to know your SSN?

We know that identity thieves try all sorts of tricks to access our SSNs. With the numbers and some other personal information, they can open accounts or apply for jobs posing as you. They can also try to get a refund from the Internal Revenue Service; alert the IRS immediately if you receive a letter saying:

• The IRS has information you’ve been paid by an employer that you don’t know.

• It has received more than one tax return with your name on it.

The IRS will work with you to straighten things out. Of course, it’s simpler if you can avoid the hassle in the first place by keeping your SSN out of the hands of thieves.

That can be a problem if you carry it everywhere. Thieves are not shy about picking your pocket or handbag and helping themselves to your SSN, as well as whatever cash you might be carrying. For that reason, experts in preventing identity theft advise you to leave your Social Security card and other documents that contain your number at home, unless it’s mandatory that you have it.

That’s where the San Diego-based Privacy Rights Clearinghouse, or PRC, has a problem with some companies and government agencies. PRC notes that in 2006, the U.S. Government Accounting Office found that 42 million Medicare cards, eight million Department of Defense ID cards and seven million Veterans Affairs ID cards carried SSNs. It took until the middle of 2011 for the numbers to begin disappearing from the military IDs.

The Social Security Number Protection Act became law in December 2010, but will take three years to fully implement. Many consumers are unhappy that their SSNs appear on their Medicare cards, which they may feel obligated to carry. The PRC suggests you photocopy your Medicare (or other) insurance card and either blacken or cut out the last four numbers of your SSN. Cut the photocopy to wallet size and carry that, instead of your card with the full number on it. Once you’re in a database, that should be sufficient for identification or authentication purposes.

The “last four numbers of your Social” has become a theme song for entities that still use SSNs as identifiers. We’re asked to believe that revealing a partial number is not risky. Consumers Union, publishers of Consumer Reports, disagreed in a September 2007 letter to the Federal Trade Commission, saying “use of even a partial SSN may be an ineffective authenticator given the widespread availability of these numbers.”

During this tax season, identity thieves are sending out bogus emails by the millions, trying to trick us. Don’t give personal or financial information to a caller or email purporting to be from the IRS — the agency does not do business in those ways. And don’t click on anything in any unsolicited email.

For more on the subject, visit the Federal Trade Commission website at www.ftc.gov and search “tax related identity theft.”

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Attorney General Mills Warns Maine Medicare Recipients of Scam

AUGUSTA – Attorney General Janet T. Mills is warning consumers about recent reports of calls from individuals claiming to represent Medicare.

There are reports from Maine Medicare recipients who have received phone calls claiming to be from Medicare.  The callers claim Medicare is issuing a new Medicare card and asks for the consumer’s Medicare number, the name of their financial institution and their financial routing and account numbers.

Medicare consumers who provide this information are advised to review their Medicare statements carefully for the next year and contact 1-800-MEDICARE immediately if anything questionable appears on their statements.  Consumers should also notify their financial institution if their account information has been compromised.

“Mainers can protect themselves by never giving any personal information to anyone over the phone,” said Attorney General Mills.

If you think you have experienced a Medicare scam, call the Attorney General’s Consumer Protection Hotline at (207) 626-8849.

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Get a check from the federal government? Watch out for scams

CONSUMER FORUM

By Russ Van Arsdale, executive director, Northeast Contact

Posted Jan. 13, 2013, at 5:41 p.m.

Ever since the federal government said it would stop sending paper checks in favor of using direct deposit, scam artists have been hard at work. With a March 1 deadline for the switch coming, expect crooks to ramp up their illegal efforts.

Scammers call, write or email to phish for personally identifiable information, such as Social Security numbers. Once they have enough information, the crooks can claim a false identity and set up an account to receive federal payments.

The U.S. Treasury Department is getting the word out that the switch to direct deposit will be complete as of March 1. Everyone who receives Social Security, veterans’ or other federal benefits should be aware that many such payments will no longer be made by paper checks.

There are two basic reasons for the change, which has been under way for a number of months. Right now, about 93 percent of all federal payments are directly deposited. The Eastern Area Agency on Aging, or EAAA, estimates 3,200 recipients in Hancock, Washington, Penobscot and Piscataquis counties are still receiving paper checks. Fully implementing direct deposit is expected to save the government $4.6 million a month, or a billion dollars over the next decade.

It’s also intended to make those federal payments more secure. Federal statistics show that more than 440,000 Social Security checks were stolen in 2011, and $70 million in checks were fraudulently endorsed. Direct deposit is expected to cut those figures dramatically.

Dyan Walsh, EAAA’s director of community services, says about 300,000 Mainers use direct deposit. “It’s a safety issue,” Walsh says, “to reduce the chance of anything happening to those payments.”

However, there are still risks. Those scammers are already on the phones, claiming to be government officials and asking people for the information that will help the crooks steal their money. Be aware: Governments don’t call or email and ask personal questions; if someone calls you claiming to be a federal official and wants personal information, just hang up.

Instead, you should take the initiative to make sure your payments are secure. The Treasury Department has launched the Go Direct campaign, explaining and promoting the change at www.GoDirect.org. Information is also available through a toll-free call to 800-333-1795, from 8 a.m to 8 p.m. Eastern time, Monday-Friday.

You can arrange for direct deposit to your bank or credit union account, either by phone or online. Christopher Pinkham, president of the Maine Bankers Association, says people in the industry are ready to answer customers’ concerns, especially about safety.

“It’s remarkable how well [direct deposit] works,” he told me.

Visit your bank or credit union and ask questions directly, if using the phone or email makes you uneasy.

You may opt to receive your payments by way of what’s called Direct Express Debit Mastercard. There’s no charge to sign up for the prepaid debit card, and most services are free. Those who have not arranged direct deposit by March 1 will receive their payments this way.

When making the switch you’ll need your Social Security number or claim number; 12-digit federal benefit check number; amount of most recent federal benefit check; financial institution’s routing transit number, and your account number and type — checking or savings. Work with a trusted friend or relative if you need help.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Research reverse mortgages before applying — it’s the law

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT
Posted Jan. 06, 2013, at 9:25 a.m.

For many seniors, a financial instrument called a reverse mortgage provides a solution in tight economic times. A reverse mortgage — also called a home equity conversion mortgage (HECM) — may allow an eligible consumer to stay in his or her home and receive cash payments based on the equity of that home.

Reverse mortgages were explained in a recent Bangor Daily News article (BDN, Dec. 28). We’re revisiting that topic to stress that reverse mortgages are not for everyone and that they should be entered into only after thorough research with an approved counselor.

That’s not a suggestion — it’s the law. To receive a reverse mortgage, the National Housing Act mandates counseling from a nonprofit agency approved by the Federal Housing Administration. The counselor provides unbiased information about the reverse mortgage process to help the consumer make an informed decision.

That’s not necessarily the kind of information you’ll get from the “as seen on TV” outfits. The stars of yesteryear may believe they’re acting in your best interest … or they may simply be playing a role. Outright scammers are also on the scene, sometimes using reverse mortgage schemes to cheat seniors out of the equity they’ve built up.

Reverse mortgages are designed for homeowners age 62 and older. To qualify, the borrower must live in the home as his or her principal residence and have either no mortgage or just a small amount left on the mortgage. The reverse mortgage allows several methods of payment to the resident, based on the amount of equity in the home.

Let’s say you have more monthly expenses than available income. Under one reverse mortgage arrangement, you might receive monthly payments allowing you to cover those expenses. Perhaps you are expecting some sizeable medical bills; a line of credit might be another scenario. A third option might be a combination of the two.

All of this is not cheap. A few years back, FHA increased the mortgage insurance premium borrowers pay from 0.5 to 1.25 percent of the balance on the reverse mortgage. The borrower pays that, plus compounding interest charges, loan origination and servicing fees, plus closing costs. There’s also a $125 fee for that counseling we mentioned, although members of the Reverse Mortgage Counseling Association (HUD-approved counselors) can waive or delay payment of those fees.

That’s not all. Homeowners are expected to perform normal upkeep on their property. They’re also responsible for paying property taxes and homeowners insurance premiums. If you fail to do those things, the lender can foreclose.

The previous BDN article noted a report to Congress by the Consumer Financial Protection Bureau, forecasting a rise in the use of reverse mortgages by baby boomers. Many have been taking their qualified amounts in a lump sum and refinancing their homes. The Bureau predicts the effect will be to “chip away at their remaining home equity over time.”

It’s all food for a large meal of thought —and counseling — before taking out a reverse mortgage. Will Lund, Superintendent of Maine’s Bureau of Consumer Credit Protection, says senior homeowners might be better served by taking out a home equity loan or home equity line of credit.

For more information, visit the HUD website ( www.hud.gov) and search for “reverse mortgage.”

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Auburn grandmother scammed out of $985 — Sun Journal

Auburn grandmother scammed out of $985.

Lewiston-Auburn |

Monday, December 10, 2012 at 9:00 pm

AUBURN — Betty Lugner, 76, was scammed out of $985, and wants to warn others about phone calls asking for money to rescue a grandchild.

Lugner, 76, is a widow, grandmother of six and great-grandmother of five. She has Parkinson’s disease, and lives on Social Security in an Auburn apartment.

On Friday afternoon her phone rang. “It was a man. He said, ‘We have your grandson at the embassy in Mexico.’ The man said if they didn’t have the money, he’d have to go in a cell.”

With all the drug violence in Mexico, Lugner was afraid for her grandson. “Just the thought of him being down there with the shooting on the streets down there. It was the worst feeling in the world.”

The caller told Lugner they picked up her grandson the night before, there was cocaine in his car, they tested him for drugs and he came out clean. But the implication was that her grandson was being set up and headed to jail.

“They kept saying, ‘don’t say anything to anyone about this.’ They wanted me to talk to him. So I talked to him.”

Another male voice posing as her grandson spoke, starting with, “Hi Gram.” Her grandson calls her “gram,” not “grandma” or “nana.”

“He said, ‘What I’m going to tell you you can’t ever, ever, ever tell anyone.’ I thought that was strange,” Lugner said. Her grandson is 18 and lives in Poland. She had seen him a few days ago. She asked how did he get to Mexico.

“He said, ‘A buddy of mine’s father owns a motel down here. We were going down here to see him.’”

Lugner told the men she didn’t have $985 but had a credit card. He told her to go to her credit union, get a cash advance, then go to Walmart and “Money Gram,” or wire, the cash to a number they gave her. “They kept telling me to do it as soon as possible because the embassy’s going to close.”

She did as they said.

At Walmart the clerk who handled the Money Gram, as well as the manager, questioned Lugner if she was being scammed. She insisted the money be sent.

“I wasn’t taking any chances,” Lugner said. “I kept saying, ‘What if it was Chris.’ If they put him in jail down there they’d beat him to a pulp.” While at Walmart “I was a wreck,” she said. “I was shaking all over. “

Her friend, Marge Chaplin, was with her when she got the phone call, went to the credit union and Walmart. Chaplin suspected it was a scam and said so to Lugner.

But, Chaplin said, when the call came in the caller ID said “embassy,” the man didn’t have any accent sounding somewhat legitimate, and the callers had the grandson’s name and other personal information correct.

Afterward, Chaplin and Lugner went back to Lugner’s apartment. Upset and frightened, “I sat here in a fog all night,” Lugner said.

Then came a knock on the door. Her grandson came in looking for pants to wear to a ceremony.

The women called the Auburn Police Department and filed a complaint, but the money was gone.

They Googled the phone number the money was wired to, the number was from Quebec, Canada, “quite a ways from Mexico,” Chaplin said.

Lugner contacted her credit card company; because it was fraud she’ll be reimbursed, she said. But what happened has left her shaken.

She wants others aware and prevent someone else from being victimized. If it happened again she’d do things differently, she said.

What happened to Lugner is “a classic target-the-grandparents scam,” Auburn Deputy Chief Jason Moen said Monday. People call saying a grandchild is in jail.

“They know just enough about the grandchild and grandparents to make it seem real. Between Google and Facebook, it’s amazing what you can find out about anyone,” Moen said.

If anyone gets the kind of call Lugner did, “the best thing to do is contact family members to see where the person in question is, and always get a callback number,” Moen said.

One huge red flag is that the state department would never ask for money, he said.

“It’s not going to happen.”

Superintendent of Insurance Highlights Final Days of Medicare Open Enrollment Period

Tips to Protect Consumers While Making Important Decisions

 

GARDINER - Each year, Medicare beneficiaries can evaluate and change their health coverage options during open enrollment.  Medicare’s 2013 open enrollment period for Medicare Part D (prescription drug coverage) and Medicare Advantage began October 15 and runs through December 7, 2012.  New benefit choices will take effect January 1, 2013.

“Even if you are happy with your current plan, it is still a good idea to look at your options,” recommended Maine Insurance Superintendent Eric Cioppa. “For most current participants, this will be the only time in which they can make coverage changes, and many plans are changing.  A little extra research could result in significant savings.”

In 2012, Maine had approximately 276,460 eligible Medicare beneficiaries according to Henry J. Kaiser Family Foundation’s state health data report, representing about 21% of Maine’s population.

There are many resources available to assist Mainers with their Medicare plan choices.  Free Medicare information is available from trained health insurance counselors throughout Maine through the State Health Insurance Program (SHIP).

SHIP Counselors do not sell insurance or recommend policies and their services are confidential. Maine’s five Area Agencies on Aging and Legal Services for the Elderly can provide SHIP counseling services. To contact a local Area Agency on Aging, call 1-877-353-3771, and to contact Legal Services for the Elderly (voice & TTY) call 1-800-750-5353 or visit www.mainelse.org.  Consumers can also contact the Office of Aging and Disability Services, at 1-800-262-2232 (TTY – Maine relay 711).

Each fall, Medicare beneficiaries receive the Medicare & You Handbook, and program comparisons are available at www.medicare.gov or by calling 1-800-MEDICARE (1-800-633-4227), 24 hours-a-day, seven days-a-week (TTY users can call 1-877-486-2048).

“This can be a confusing process.  We encourage consumers to ask for help soon and not wait until the end of open enrollment,” added Cioppa. “We also want Maine consumers to watch for abusive or aggressive sales tactics.”

Insurance producers marketing Medicare plans are subject to both state and federal regulations. Superintendent Cioppa offers the following tips for consumers to help ensure that they are protected while making these important choices.

1.      Make sure your salesperson is licensed.  Please contact the Bureau of Insurance to check the license status of the salesperson.

2.      Understand who you are talking to.  Medicare does not have “representatives” to solicit business, so be wary of any salesperson claiming to be one.

3.      Be wary of free meals.  Federal regulations prohibit offers of free meals for signing up for a plan or for listening to a Medicare sales presentation.

4.      Expect an appointment.  A Medicare salesperson cannot call you at home or go door-to-door unless you have given them permission to do so.

5.      Be wary of additional sales pitches.  Federal regulations prohibit the sale of additional insurance products (examples: life insurance or annuities) during any sales or marketing presentation for Medicare prescription drug or Medicare Advantage plans.

6.      Be careful with your personal information.  Make sure the person asking for your information is entitled to receive it.

7.      If you are uncomfortable, take advantage of the resources listed above.

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound business practices through high quality, impartial and efficient oversight of insurers, financial institutions, creditors, investment providers, and numerous occupations to protect the public. Consumers can reach the Bureau at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

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Maine cop goes all out for victims of ‘lotteries’ | The Portland Press Herald / Maine Sunday Telegram

The York County officer works with FairPoint and others to end a crime that targets the elderly.

By David Hench dhench@mainetoday.com
Staff Writer

In a quavering voice, the elderly York County woman insisted she had no more money.

The man on the other end of the phone call was understanding, soothing — but insistent.

The only way she could claim her $2.5 million prize and get back the tens of thousands of dollars she had already paid in fees and taxes was to make one final payment.

Maybe she had untapped credit cards, or friends who would lend her money?

Maj. William King of the York County Sheriff’s Office knows the pressure tactics well, and it makes him angry.

“These people are ruthless. They will just suck you dry,” said King, a 30-year veteran of law enforcement, which included a stint with the Department of Justice.

King sees himself as the voice of victims who often are too afraid or too embarrassed to come forward.

Authorities estimate that just 10 percent of the people victimized by lottery scams report it to police or family members. Many worry the lapse will be seen as evidence they cannot manage their own affairs.

King said he knows of Mainers who have lost a total of more than $1 million. One woman in Eagle Lake lost $700,000. Another in Biddeford lost $80,000 and one in Cape Elizabeth lost $140,000.

As a result, King has become one of the few law enforcement officials in the country who have dedicated themselves to fighting the so-called Jamaican lottery scam.

King joined with officials from FairPoint Communications, which delivers voice and data communications in 18 states, including those in northern New England, at a recent forum in New Kingston, Jamaica about strategies to combat the scam.

He also traveled with FairPoint President Michael Smith to Washington D.C. Wednesday and Thursday to meet with members of the Justice department, AARP and representatives and senators from the three northern New England states to look for allies in the fight.

“You feel helpless,” King said. “I’ve been in law enforcement my whole life. When somebody comes to you as a victim of a crime, I just don’t accept there’s nothing we can do.”

FairPoint officials say the scams seem to be concentrated in northern New England, after hearing from family members about relatives who have been conned out of their life savings.

“These are our customers. We should be protecting our customers,” said spokesman Jeff Nevins.

“We felt they were targeting Northern New England. We have one of the oldest populations up here in all three states.”

A statement from Rep. Mike Michaud said he has secured a commitment from the Federal Trade Commission, which collects complaints about fraud and identity theft, to hold a forum in Maine next year on the issue and what Mainers can do to protect themselves and family members.

U.S. Sen. Susan Collins indicated the issue could also merit congressional hearings, King said.

The York County Sheriff’s Office in 2011 was alerted to a woman in Arundel who was being victimized, he recalled. While she insisted she was on her way to winning millions, she agreed to allow sheriff’s deputies to record the conversations, giving them hours of recordings and insight into how such scammers work.