FraudAlert! Helping keep the promise. Wisconsin SMP December 2009 Volume 13, No. 5 LEGAL SERVICES Coalition of Wisconsin Aging Groups From the Project Coordinator....... Elizabeth Conrad Social Security Has Retirement Estimator Online Cheri Arnott Parlaman, Associate Commissioner for External Affairs included the following in a recent Social Security Newsletter. Social Security s online Retirement Estimator, available at www.socialsecurity.gov/estimator, can now be used to provide immediate and personalized benefit estimates to Medicare only beneficiaries. This means that people who have enrolled in Medicare, but have not yet filed for Social Security benefits, will no longer need to contact their local office to obtain an estimate of their retirement benefits. In addition, Social Security s Commissioner, Michael J. Astrue, has announced that next year the online Retirement Estimator will be the first online service in all of government to be made available in Spanish. We ask that you share this important information with those parties who would find it of interest. Vaccination Profiles - A Scam The North Carolina Division of Public Health has recently warned of a new H1N1 scam. Fraudulent e-mails purporting to be from the Centers for Disease Control are being sent to recipients, asking them to create a personal vaccination profile. The recipients are directed to a fake CDC website, where they are asked for personal information. Wisconsin SMP In this issue: Retirement Estimator Available Online from the Social Security Administration Vaccination Profiles A Scam Grassley Introduces Legislation to Fight Medicare Fraud Tips On Canceling Credit Cards Avoiding Credit Repair Scams Medicare.gov Adds Video & Guide For Caregivers Email Address To Report Medicare Part D Scams medfraud@cwag.org CWAG s Website www.cwag.org Published and distributed by the Legal Services Division of the Coalition of Wisconsin Aging Groups funded in part by grant #90MP0016 from the Administration on Aging, Department of Health and Human Services. Grantees undertaking projects under government sponsorship are encouraged to express freely their findings and conclusions. Points of view or opinions do not, therefore, necessarily represent official Administration on Aging Policy. EDITOR AND PROJECT COORDINATOR Elizabeth Conrad PRODUCTION ASSISTANT Patti Wiersma This publication may be reproduced ONLY in its entirety. Permission to excerpt portions must be obtained prior to use. 2009 CWAG. All rights reserved. Officials think that the scam might involve not only acquiring personal information (phishing) but also possible downloading of malicious codes onto the recipients computers. Neither the states nor the CDC are creating vaccination profiles. FRAUD ALERT! Legal Services Coalition of Wisconsin Aging Groups 2850 Dairy Drive Madison, WI 53718-6742 608-224-0606 www.cwag.org econrad@cwag.org
Saving Taxpayer Dollars Wisconsin SMP Volunteers Do Their Part It is hard to believe that the Wisconsin SMP has just completed the first six months of its 5 th three-year Administration on Aging grant. What does this mean to Wisconsin Medicare beneficiaries, family caregivers, and the professionals who serve them? Education is key to protecting oneself from Medicare and other healthcare fraud, waste, and abuse. To accomplish this during the most recent 6- month period, the volunteers and staff of the Wisconsin SMP project have reached out to over 6,000 people. Booths for handing out SMP information were set up at 34 events, and volunteers and staff provided 21 educational seminars. In addition, our monthly newsletter, The Fraud Alert, is emailed or mailed to over 2,000 people every month. The Wisconsin SMP project s success is due to the continued efforts of 39 very active volunteers. With over 870,000 Medicare beneficiaries in Wisconsin, we continually search for opportunities to share the SMP message and to recruit additional volunteers. If you or someone you know has an interest in helping others learn how to recognize healthcare fraud, waste, and abuse, please contact Judy Steinke, Volunteer Coordinator, at (800) 488-2596, Ext. 342. Senator Charles Grassley Introduces Legislation to Fight Medicare Fraud Fighting Medicare Payment Fraud Act of 2009 (S.2774) Fraud, waste, and abuse in the Medicare program is being targeted by both a White House executive order and proposed legislation from Senator Charles Grassley, Republican of Iowa. A new Federal report shows that approximately half of the $98 billion wasted in Federal spending in 2009 took the form of improper payments related to Medicare, Medicare Advantage, and Medicaid. It is not clear how much of this is outright fraud and how much is related to errors such as claims filed with incomplete documentation or an illegible doctor s signature. On November 23rd, President Obama signed an executive order that will require all Federal agencies to maintain a Web site to track improper payments, error rates, and outstanding payments. The government will also crack down on contractors who receive improper payments. The Recovery Audit Contractor (RAC) program, which investigates fraud in hospital claims, will be extended to all 50 states. Senator Grassley has introduced legislation that would give the Federal government more time to investigate claims where fraud or abuse is suspected. Current rules oblige the government to pay claims within a relatively short period of time. Says Grassley, Because of this the prompt payment rule, the government puts itself in a position of having to pay and chase Medicare fraud, instead of working to prevent it in the first place. His bill would allow payments for suspect claims to be delayed by the Health and Human Services Secretary in order to conduct a more thorough review. 2
Tips on Canceling Credit Cards When to cancel People have a variety of reasons for wanting to cancel a card. For instance, they may want to stop paying the annual fee on a card, they may want to avoid the risk of excessive spending, or they may have opened a new line of credit and want to close out an old one. Also, they may think that a card which is never used is an invitation to identity theft. Financial experts advise that canceling a credit card may hurt your credit score, at least temporarily. The reason is that one of the factors in determining a credit score is the utilization ratio, which is the figure that results when the total amount of debt is divided by the total amount of credit available. If that ratio is one, then you re using all the credit you have available you ve maxed out the cards. If the ratio is zero, you ve paid everything off and owe nothing. Clearly, the closer you get to zero the better you look to lenders. Suppose you have four credit cards and a total of $20,000 in credit available. You have debt of $5,000. Dividing the debt by the credit gives you.25, but if you cancel one of the cards, say a card with a $6,000 line of credit, you re now dividing $5,000 by $14,000, which comes out to.36. You look closer to being maxed out. Of course, if you pay off all your cards before canceling one of them, the cancellation won t change the utilization ratio: zero divided by $20,000 equals zero divided by $14,000. David Jones, the president of the Association of Independent Consumer Credit Counseling Agencies, warns that having excessive access to credit may also hurt you if you have too much credit compared to your income. Lenders might become concerned that you could overspend. The experts also say that if you are in credit trouble and know that an open line of credit will tempt you to overextension, it is better to close the account and take the hit to your score rather than acquire more debt than you can afford. How to cancel There s more to canceling a card than cutting it up or shredding it to make it unusable. Before you cancel the card, pay it off in full. It s a bad idea to notify the issuer in advance that you re canceling the card: the issuer may raise the interest rates to the maximum as a penalty for leaving. Pay in full, and then call the customer service number to make certain that the balance is zero. (Interest may have accumulated between the time you got the bill and the time they got your check.) The customer service number is on your credit card and your monthly statement. That s also where you ll find the mailing address for the issuer. Once you re certain that the card is paid off, call the customer service representative and tell him or her you re canceling the card. The representative may make efforts to talk you out of it, perhaps offering to lower your interest rate or upgrade the card. Depending on your reasons for canceling, you may or may not find it worthwhile to accept the deal. 3
Assuming that you don t accept the deal, stand firm and ask the customer service representative to note that the card is being cancelled at your request. (The impact on your credit score is different if the cancellation is listed as being at the request of the issuer.) Also, ask for a name and address to which you can send written notice that you are canceling the card. Make a note of this, along with the date and time you called and the name of the person to whom you spoke. Next, write a short cancellation letter to the card issuer and request written confirmation of the cancellation. Include your name, address, phone number, card number, and details of the phone call with customer service. Also, note again that you want your credit report to show that the account was closed at your request. Send the letter certified or return receipt requested, and keep a copy. It may take more than a month for the cancellation to work its way through the system. Wait, and then look at your credit report to make sure the account is marked closed, and closed at your request. If it isn t, you ll need to use those notes and copy of your letter. Call customer service again, and follow up with a letter again, referencing your first call and letter. Avoiding Credit Repair Scams Readers of the Fraud Alert are very familiar with the adage, "If it looks too good to be true, it probably is." There's another important rule, the Rule of Holes: "When you've dug yourself into a hole, stop digging." When you find yourself in financial difficulty that affects your credit rating, don t make matters worse by falling victim to scams that promise to "repair" your credit. There are plenty of scams out there. In this troubled economy, many people whose poor credit history makes it difficult for them to get a car loan or a mortgage are tempted by ads promising that (for a fee), "We can erase your bad credit 100% guaranteed!" "Credit problems? No problem!" "We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!" The Wisconsin Department of Agriculture, Trade, and Consumer Protection says flatly, "Do yourself a favor and save some money, too. Don t believe these statements." The Federal Trade Commission notes that such claims are "very likely signs of a scam." These companies can't deliver on promises to remove accurate, timely information from your report, and you can get inaccurate information removed yourself without having to pay someone to do it for you. You can be confident you're dealing with a scam if the company: Expects you to pay in advance. Under the Credit Repair Organizations Act, companies cannot require you to pay until they have completed the promised services, and they cannot start performing those services until you have signed a written contract and a three-day waiting period has passed. During the waiting period, you can cancel the contract without paying anything. Fails to inform you what your rights are, and what you can do for yourself. The law requires credit repair organizations to give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract. Read it, and read the contract. 4
Advises you not to contact the major credit reporting companies directly. Claims it can get rid of negative credit information in your report even if that information is correct and current. Recommends that you dispute information in your credit report that is correct and current. Suggests that you set up a new credit identity, for instance by applying for an Employer Identification Number to use instead of your Social Security number. Remember, it's a Federal crime to lie on a loan or credit application, to lie about your Social Security number, or to obtain an EIN under false pretenses. Using the mail, Internet, or telephone to apply for credit using false information could cause you to be prosecuted for mail or wire fraud. On the other hand, if there is inaccurate information in your credit report, you have the option of selfhelp, and it costs you nothing to find out what's in the report. Doing a credit check-up is a good idea when you're planning a major purchase like a home or vehicle, even if you don t expect any problems with your credit. There are three national consumer reporting companies: Equifax, Experian, and TransUnion. Each is required to provide you with a free copy of your credit report every 12 months, if you ask. They can charge you for additional reports within a 12-month period. To order a report, go to the centralized website at: www.annualcreditreport.com, or call 1-877-322-8228. You can also find a copy of the Annual Credit Report Request Form at www.ftc.gov/credit and mail it to: Annual Credit Report Request Service PO Box 105281 Atlanta, GA 30348-5281 If you contact the companies at their individual addresses, you may be charged as much as $10.50 instead of getting the free report to which you're entitled. You can request reports from all three at the same time or stagger your requests throughout the year. Your free credit report will give you necessary information about the state of your current credit and your credit history, but it will not give you your actual credit score. Sometimes www.annualcreditreport.com may subject you to advertising asking you if you would like to purchase your credit score for a small price. You can simply click "no thanks" to pass this advertisement and continue to receive your free credit report. You may, of course, purchase your credit score if you want to know, but it is not necessary. Please also note that you will be asked very personal information when submitting your credit report request. They may ask you to verify the last four digits of a credit card you have, what the value of a loan currently in your name is worth, where you have lived in the past, and so on. They will want to know your social security number. This is one of those few exceptions to the general rule of never revealing this information - here, they are using it to protect you, and you may feel confident revealing it to them. Your credit report reveals a lot of financial information about you, and they ask these very personal questions to confirm that it is in fact you requesting your credit report, not someone pretending to be you. 5
Should you find inaccurate information, you can dispute it. Under the Fair Credit Reporting Act, the consumer reporting company and the information provider are responsible for correcting inaccurate or incomplete information. The Federal Trade Commission website offers details about this process, including a sample dispute letter, at: www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm. If, after investigation, the company corrects the information you disputed, you can also request that the company send notices of correction to anyone who received your report in the past six months. If the investigation doesn't resolve the dispute, you can ask that a statement of the dispute be included in your file and in all future reports. Even if negative information is true, it can still be removed by the passage of time. You can request the removal of outdated information. The consumer reporting companies can report most negative information for seven years and bankruptcy information for ten years. If there's an unpaid judgment against you, it can be reported for seven years from the date the event took place, or until the statute of limitations runs out, whichever is longer. There is no time limit on reports of criminal convictions. There is also no time limit on information reported because you applied for a job paying more than $75,000 a year, or applied for more than $150,000 worth of credit or life insurance. The FTC reminds you that a less-than-perfect credit history doesn t necessarily mean that credit is out of your reach: "Creditors set their own credit-giving standards and not all of them look at your credit history the same way. Some of them may look only at recent years to evaluate your credit, and they may grant credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards." Improving your creditworthiness takes time and effort, but there is help available. The FTC website at www.ftc.gov has fact sheets on debt consolidation, bankruptcy, budgeting, and find a trustworthy credit counselor and ways to get yourself out of the hole rather than digging it deeper. If you've fallen victim to a credit repair scam, call the state's Consumer Protection Hotline at 800-422- 7128 or file an online complaint at http://www.datcp.state.wi.us/cp/consumerinfo/cp/complaintform/cpcomplaintform.jsp. Medicare.gov Adds Video, Guide for Caregivers According to a recent National Council on Aging newsletter, a new video on the Ask Medicare Web site tells one family s story and highlights programs and resources available for caregivers. The site also features a new resource guide with links to services available through the federal Administration on Aging, Centers for Medicare & Medicaid Services, and state and local programs. Watch the video. Download the resource guide. 6
Reprinted with permission from the Wisconsin Better Business Bureau Scammers Deliver Email Scam in Time for the Holidays Better Business Bureau of Southern Arizona is alerting consumers to a new holiday email scam that s popping-up in consumers inboxes just in time for the holiday shopping season. The email appears to be a legitimate email from DHL Services, a parcel shipment company, but the email actually contains an attachment that if opened, will infect your computer with a virus. The email, which is displayed below, is similar to emails that seem to turn up every year during the holidays. At this time of year many consumers are often not surprised to receive unexpected packages in the mail, so when they see a notification in their inbox stating they have a package waiting, many consumers are more likely to believe it. Dear Customer! The courier company was not able to deliver your parcel by your address. Cause: Error in shipping address. You may pickup the parcel at our post office personally. Please attention! The shipping label is attached to this e-mail. Print this label to get this package at our post office. Please do not reply to this e-mail, it is an unmonitored mailbox! Thank you, DHL Services. DHL s Web site says the attachment is actually the Infostealer.Banker.C virus, a known and verified virus that is employed by scammers to steal their victims identity. BBB reminds consumers to never open an email attachment or link from an unknown source. Often times the attachment or link turns out to be nothing but a virus that will infect your computer, causing costly damage, and possibly stealing your identity. This Christmas season, don t unwrap unknown email attachments. #### Wisconsin Better Business Bureau Contact Info: (800) 273-1002 7
FRAUD ALERT ELECTRONIC VERSION In previous issues, we told you that Wisconsin SMP Fraud Alert will be sent electronically unless we receive a request for a paper copy from you. Contact Patti Wiersma at pwiersma@cwag.org, giving her your e-mail address, to add to our list. Your cooperation is greatly appreciated. You Can also Access Our Publication by Visiting our Website www.cwag.org Click on Legal Rights and Benefits then click on Wisconsin SMP and scroll down to Fraud Alert Archives. ATTENTION: All of you with E-mail In an effort to save paper, postage and be volunteer friendly, we will E-mail issues of the Fraud Alert to those who have E-mail. Please contact Patti Wiersma at pwiersma@cwag.org, giving her your e-mail address to add to our list. WE DO SUGGEST THAT YOU PRINT EACH ISSUE AND SAVE IT IN YOUR MEDICARE BINDER FOR FUTURE USE. Thank you! For more information, contact: Elizabeth Conrad, SMP Project Coordinator Coalition of Wisconsin Aging Groups 2850 Dairy Drive Suite 100 Madison, WI 53718-6742 Phone: 800/488-2596 608/224-0606 E-mail: econrad@cwag.org 8