7 Open Enrollment Scams To Watch Out For

Overcoming the hidden dangers

Open enrollment is a period when you can apply for health insurance without a qualifying life event like a marriage, job change or addition to the family. Countless scammers take advantage of it each year for months on end. Do you know which open enrollment scams to watch out for? 

1. Medicare Is About to Cancel Your Plan

Although the Federal Communications Commission (FCC) fined health insurance telemarketers $225 million in 2021 for spoofing approximately 1 billion robocalls in under five months, scammers continue to call. They’re after your personally identifiable information (PII), bank account details and Medicare identification number, among other things.

Generally, Medicare can only cancel your coverage if your outstanding bills become delinquent, you lied on your application, or you committed fraud. You don't have to worry if these situations don't apply to you. 

2. You Qualify for Free Testing or Supplies

One common scam involves a message saying you qualify for free genetic testing, medical supplies or prescription drugs. While the scammer may simply message you, they may also send packages. Don’t be fooled — they’re trying to take advantage of open enrollment confusion to get your Medicare number and financial details.

If you accept the offer, you will be asked to give the sender your credit card numbers to cover shipping. Alternatively, they may request your Medicare number to organize the “free” gift. Either way, they walk away with sensitive information they can use to commit fraud.  

Remember, anyone can fall victim to phishing. Many of the 92,000 people who collectively lost over $1.7 billion because of scams in 2021 probably believed they were getting a great deal or avoiding an insurance-related headache until the scammer vanished with their money. Ignore unsolicited packages and verify anyone who contacts you.

3. You’re Preapproved for a Cheaper Plan

If someone states you’ve been preapproved for a cheaper plan, they’re either misrepresenting the benefits or outright scamming you. They often leverage social engineering techniques — a type of psychological manipulation related to phishing — to make you feel more comfortable revealing your PII. 

As healthcare costs continue rising, being preapproved for a more affordable plan sounds great. However, if it sounds too good to be true, it probably is. Check your state insurance commissioner’s website to see if the company is licensed. If it’s not, whatever it’s trying to sell you isn’t insurance.  

4. Medicare Needs to Re-Verify Your Identity

Phone numbers and email addresses can be spoofed to make messages look legitimate. While the goal of a call may be to get you to reveal sensitive PII, any unprompted email likely contains malware disguised as an attachment or link. If you infect your device, bad actors can remotely watch your activity or encrypt your files. 

While Medicare may call to confirm application details, they never ask you to reveal PII. If you receive a message asking you to verify your identity, ignore it. Contact your insurer and ask if they’ve recently reached out. 

Remember, you do not have to send money to check your eligibility or enroll. The Health Insurance Marketplace will never ask you to pay to apply or keep your coverage. Insurance companies generally won’t contact you about your plan unless you reach out first. Protect your PII and bank account by avoiding any message that may be a phishing attempt. 

5. Medicare Is Issuing New Cards

Calls claiming Medicare is issuing new cards — or that the old one is invalid — are among the most common open enrollment scams. Scammers will call out of the blue, claiming they need PII like your Social Security number, full name and birthdate to send a new one. 

In reality, Medicare isn’t issuing new cards. It also never calls unexpectedly. Instead, it sends a letter stamped with official government seals to arrange a phone call later. If you get a call from someone claiming to represent a government agency or a health insurance provider, hang up — you can always call the official phone number back. 

6. Assisters Need Payment in Exchange for Help

If assisters — the people who help you navigate the Health Insurance Marketplace — ask you to pay for their time or request personal financial details, they aren’t who they say they are. At a minimum, their goal is to trick you into giving them money. However, they usually seek access to your bank account or credit card numbers.

According to the Federal Trade Commission, assisters aren’t allowed to charge for their services and can’t ask for your financial details. If the person you’re in contact with violates this rule, double-check the site you’re on to confirm it is correct. Click on different buttons, scroll through pages and navigate to new tabs — scam websites are hardly fully functional. 

If you’re on the official Health Insurance Marketplace website, you may still be experiencing an open enrollment scam. Although these people should be trained and certified by the marketplace, insider threats are relatively common. Report them immediately if they request payment. 

7. Medicare Needs to Update Your Benefits

Open enrollment scams take advantage of your confusion, inexperience or ignorance to mislead you. Many scammers claim you can — or need to — update your benefits, hoping you don’t know any better. They request your PII and Medicare number to make fraud and identity theft possible.

According to the FCC, you shouldn’t attempt to change a plan over the phone unless you were the one who initiated contact. If you received a call telling you to do so, ignore it. The same applies to voicemails — do not use the callback number the caller leaves. Instead, call Medicare directly via the number on the official website.

Don’t Be Afraid to Reach Out for Help

Reach out to professionals at the Health Insurance Marketplace if you’re concerned you may be the victim of a scam. The call center is open around the clock for free, so you can get help regardless of when the incident occurs.

Zachary Amos is a Tech Expert with a special interest in HR technology, automation, and cybersecurity.