AARP Hearing Center
Medicare Flex Card Scams: Find Out the Truth
Learn to tell the difference between legitimate information about Medicare flex cards and fraudulent schemes designed to steal your personal information
Illustration: Rob Dobi
In this story
How scams work • Red flags • Protecting yourself • Reporting scams
You may get a call from someone impersonating a Medicare representative who tries to encourage you to purchase a Medicare flex card. Some of these offers for prepaid debit cards — available through private Medicare Advantage plans — may be legitimate, but sometimes they’re offered by criminals who lure you into sharing personal information they then use to steal your identity or submit fake Medicare claims in your name. Some criminals might take your money without sending you a card, or transfer you into a Medicare Advantage plan without your knowledge.
Jean Stone, who worked for the Centers for Medicare & Medicaid Services (CMS) for 45-plus years, says complaints about flex cards come in more often during open enrollment season. "That's when your current plan can reach out to you and tell you what's better this year than last year and [share] new benefits." Stone is now a volunteer with the Senior Medicare Patrol in New York City, which helps people avoid, detect and report Medicare fraud.
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How Medicare flex scams work
Even though the cards are called Medicare flex cards, they have nothing to do with original Medicare. They are a benefit provided by private Medicare Advantage plans and distributed to certain eligible members — quarterly or annually — to cover some health-related expenses.
Flex cards can cover over-the-counter medicine and dental care copays and provide a grocery allowance for healthful foods. The benefits sound enticing, something criminals take advantage of in these ways:
Placing false ads. Advertisements may claim that Medicare is giving out flex cards containing several hundred dollars to apply toward food and other items. You may be directed to a website where you’ll be asked to provide personal information that can be stolen, such as a Social Security number, credit card number or bank account information.
Offering a flex card. Impostors posing as government representatives call and ask for your personal information to send you a flex card. If the impostors get your Medicare number during this fake application process, they may use it to steal your identity or file false Medicare claims in your name. This is similar to another common scheme, Medicare card fraud, where criminals call to offer you a new Medicare card to try to get you to provide your personal information, says Kim McKenna, Senior Medicare Patrol (SMP) coordinator for the Washington State Office of the Insurance Commissioner. In both cases, you never receive the card, she says.
Switching you to another plan. Sometimes salespeople call and use flex cards as a way to get Medicare beneficiaries to switch from original Medicare to a Medicare Advantage plan. You may not realize that by agreeing to accept the flex card you are agreeing to let go of your original Medicare coverage and be moved to a private Medicare Advantage plan. The plans have different rules about provider networks, coverage and out-of-pocket costs. Carefully research any plan you are offered before agreeing to a switch.
Warning signs of a Medicare flex card scam
Unsolicited calls from Medicare. You receive an unexpected call from someone claiming to be from Medicare. Medicare will never call you without your request to do so.
Claims that Medicare is issuing the flex card. The ad or caller claims the flex card is from Medicare or the CMS. Medicare doesn’t issue flex cards.
Calls from Medicare Advantage salespeople. People representing Medicare Advantage plans aren’t allowed to call you unless you’re already a member of the plan or you’ve given them permission to contact you.
Claims that you can use the flex card for any purchase. The ad or caller claims you can use the card for any purchase. Medicare Advantage flex cards have specific requirements for use and qualification. Healthy food allowance and some other benefits may only be available for people with chronic conditions, says Tatiana Fassieux, training and education specialist for California Health Advocates and the state’s Senior Medicare Patrol.
How to protect yourself
Hang up immediately if you receive an unsolicited call from someone who claims to be from Medicare and asks for personal information.
Hang up or don’t respond if you receive an unsolicited call, text or email from someone asking for personal information in order to qualify for a Medicare flex card.
Do your homework. If you’re intrigued by the idea of a grocery allowance or other flex card benefits from a Medicare Advantage (MA) plan, research the plans on your own. Compare total costs for health and drug coverage, as well as provider networks, before choosing a Medicare Advantage plan, says Fassieux. You can get help choosing a plan — or deciding between original Medicare and Medicare Advantage — from your State Health Insurance Assistance Program (SHIP), which offers free counseling to help with Medicare questions and decisions.
Know the difference between original Medicare and Medicare Advantage coverage before switching from one to the other. Keep in mind that if you do switch from original Medicare to a Medicare Advantage plan, you can only return to original Medicare at certain times and you may have a difficult time qualifying for a Medigap policy if you have preexisting conditions.
Find out if you really meet the plan’s requirements to qualify for this extra benefit. You may need to have chronic conditions to qualify for some of these benefits.
Review your Medicare claims notices. Check your Medicare summary notice, which is your quarterly explanation of benefits from Medicare, for suspicious charges that may have been submitted by an ID thief using your Medicare number. You can review Medicare claims made in your name more frequently at your online Medicare account.
What to do if you are targeted
Report suspected Medicare-related fraud to Medicare at 800-MEDICARE (800-633-4227).
Contact the Senior Medicare Patrol (SMP) in your state to report Medicare scams and fraud. Find contact information at the SMP locator or call the SMP’s nationwide number at 877-808-2468. SMPs are local volunteer organizations that the federal government finances. They can answer questions and help you report the fraud to Medicare and the U.S. Department of Health and Human Services’ Office of Inspector General, which investigates Medicare fraud.
If you gave out personal information and worry that you may be a victim of identity theft, you can report potential ID theft and get a personal recovery plan at the Federal Trade Commission’s IdentityTheft.gov. You can find more information about protecting yourself from ID theft at the FTC Consumer Advice website.
Call the free AARP Fraud Watch Network Helpline, 877-908-3360, to speak with trained specialists who can provide support and guidance on what to do next and how to avoid scams. The AARP Fraud Watch Network also offers online group support sessions.
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