May 18, 2018 3 min read

People in the area have started to receive new Medicare cards. While it will take a year for all cards to be issued, Pennsylvania is among the first states to receive them.

Current Medicare cards create a major risk for identity theft because they have your Social Security number on them. The federal government made other organizations stop using SS numbers several years ago, but continued to put them on Medicare cards.

Social Security numbers will be replaced by an 11-digit, randomly generated number. New and old cards will be accepted for a year, but it is recommended you destroy your old card once you receive a new one.

The new cards are just being released and fraud is already occurring. There is no charge for a new one, but there have been reports of seniors getting a telephone call requesting a fee. Medicare will not usually contact you by phone, but by mail.

There also have been instances when someone receives a call saying you must buy prescription drug coverage before getting your new card. Most advantage plans include medicines and you buy Part D coverage for pharmaceuticals when you first go on Medicare or during the annual enrollment period between Oct. 15 and Dec. 7.

Another reported scam advises you a refund is coming from your insurance company, and the caller claims he or she needs your Social Security number and bank account information. Your insurance company would already have this information.

Some people have received requests to provide information to supposedly update your records. Do not provide this information. It has nothing to do with receiving a new Medicare card.

I know someone who received a telephone call saying he could receive a free back brace. Because he was having some back issues, he thought the doctor’s office must have arranged for this. The caller said, “You have Medicare right? Just give the number and I will send the free back brace.”

The senior thought everything sounded right and provided the number. Later, when he reflected on the conversation, he asked his wife whether she thought something was wrong. That’s when they realized they were scammed.

Many seniors have issues with their backs, so this is pretty easy for crooks to guess. Most people over 65 have Medicare and free is always a great price. These scammers are very smooth and convincing when they talk.

Be very careful. Never give your Social Security number and other sensitive information if you receive a call. If you made the call, you may have to give the number to prove who you are. Banks, insurance companies and the government already have your information. Protect your identity by making smart choices with whom you share your sensitive information.

New Medicare cards are an important step in reducing identity theft. But you still must be careful of scams. Also, don’t carry your Social Security card in your wallet. If that card is lost or stolen, you lose the benefits gained from your new Medicare card.

Gary Boatman is a Monessen-based certified financial planner and author of “Your Financial Compass: Safe passage through the turbulent waters of taxes, income planning and market volatility.”

To submit columns on financial planning or investing, email Rick Shrum at rshrum@observer-reporter.com.