Recently the government started issuing $250 checks to help cover the "doughnut hole" gap in Medicare Part D prescription drug coverage plans. The checks are intended to help Medicare recipients cover the out-of-pocket expenses incurred when the recipient reaches the coverage gap. However, recipients need to be careful as scammers are actively attempting to get their hands on the checks or other personal information.
The Medicare Part D "Doughnut Hole"
For 2010, Medicare Part D prescription drugs plans have a deductible of $310 and a $38.94 monthly premium. Once the deductible has been met, recipients pay 25 percent of the price of the drugs while the government covers the other 75 percent.
The "doughnut hole" or coverage gap occurs when the spending of the recipient and the drug plan reaches $2,830. After this amount is reached, the recipient is responsible for covering the full amount of the prescription drugs. However, after spending an additional $3,610, the recipient is eligible to receive "catastrophic" drug coverage, which requires the recipient to cover only 5 percent of the costs of the prescription drugs.
Watch Out for Scams
Sanford Holmes, a volunteer with AARP Ohio, cautions Medicare Part D recipients to be aware of scams. One trick that scammers use is to offer to help recipients, for a fee, to receive their check more quickly. If you receive an offer such as this, report it immediately. No one can speed up to process of receiving the Medicare Part D process - this is a scam.
Not only are scammers attempting to rob recipients of the $250 checks, but scammers are also on the hunt for personal information such as Social Security numbers and bank account numbers.
There is nothing that a recipient needs to do to receive their check. Checks will automatically be mailed to the recipients.
Holmes urges any recipient who is asked for personal information or is offered assistance in receiving their check to report the scam immediately. To report a possible scam, call 800-MEDICARE.
If you have questions about the "doughnut hole" coverage gap in Medicare Part D prescription drug coverage or the $250 check to help with out-of-pocket expenses, please consult a knowledgeable attorney.
