Understanding Medicare Supplements: What’s Worth Paying For

September 8, 2025 · Finance

Financial Red Flags and Scams to Watch Out For

Where money and healthcare intersect, scams are unfortunately common. Seniors are often targeted with confusing or misleading information. Here are two common schemes and one costly mistake to avoid.

An older woman in a sunlit living room sits in an armchair, holding a cordless phone with a confused, uncertain expression. — That uneasy feeling when an unexpected call just doesn’t sound right.

Scam 1: The “Official Medicare Representative” Call

You receive an unsolicited phone call from someone claiming to be from Medicare or another government agency. They say your Medicare card is expiring, you need to “re-enroll,” or you qualify for a “special” new plan. To do this, they need you to “verify” your Medicare number, Social Security number, or bank account information. This is a scam to steal your identity and money.

Red Flag: Medicare will almost never call you unless you have called them first and requested a callback. Government agencies do not call to sell you products. Never give personal information to anyone who calls you out of the blue. To protect yourself from scams and for consumer information, consult the Consumer Financial Protection Bureau (CFPB) and the FTC.

An older woman in an armchair, skeptically examining a colorful mailer advertising — Does that “zero premium” offer sound too good to be true?

Scam 2: Misleading “Zero-Premium” Advertisements

You see TV commercials or mailers promising plans with zero-dollar premiums, free groceries, and other perks. These ads are almost always for Medicare Advantage plans, not Medicare Supplements. The scam is one of omission—they don’t make it clear that you would be leaving Original Medicare and joining a private plan with network restrictions and different cost structures. Medigap plans always have a monthly premium.

Red Flag: If an offer sounds too good to be true, it is. Be very clear about what type of plan is being advertised. If you want the freedom to see any doctor who accepts Medicare, you want to stick with Original Medicare and a Medigap plan, not a Medicare Advantage plan.

An older man looks confused at a laptop screen displaying a complex form, with opened envelopes on a table. — Realizing changing plans isn’t as simple as it seems.

Costly Mistake: Assuming You Can Switch Plans Easily

This is not a scam, but a widespread and financially damaging misunderstanding. Many people believe they can switch their Medigap plan every year during the fall Open Enrollment Period, just like with Part D or Medicare Advantage plans. This is false. The fall enrollment period does not apply to Medigap. Outside of your initial six-month enrollment window, your ability to switch plans is limited and often requires medical underwriting. Choosing the right plan from the start is paramount.