A Law & Tax Magazine Special Report

Debunking the Medicare Scam Epidemic:

The Myth, The Law, The Trap, The Truth

People think scam calls are a minor nuisance.
They’re not.

They are a multibillion-dollar criminal enterprise that exploits the exact legal gaps Congress never closed.

And here’s the myth that gets millions of seniors every single year:

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MYTH:

“If a caller claims to be from Medicare and already has your information, it must be legitimate.”

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REALITY:

Under 42 U.S.C. § 1320d-6 and CMS regulations, Medicare will NEVER call you to confirm, update, or reinstate benefits.
Not today.
Not ever.
Not for any reason.

Any caller claiming otherwise is either:

• Violating federal impersonation statutes,
• Phishing for your Medicare Beneficiary Identifier (MBI),
• Trying to bill fraudulent “medical equipment,”
• Or setting you up for identity-linked tax liability.

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THE LEGAL TRAP NO ONE TALKS ABOUT

Scammers don’t need your SSN.
They only need your MBI – because it’s tied to:

• Claims submissions
• Durable medical equipment fraud
• Fake hospice enrollments
• Medicare Advantage plan switching
• Prescription billing fraud
• Tax-linked identity theft

One stolen MBI can trigger IRS mismatches, erroneous 1095-B filings, and even estate-related liabilities if the fraud continues after death.

No one tells seniors this.
No one trains families on this.
And scammers exploit it.

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CASE STUDY (THE ONE THAT SHOULD HAVE BEEN FRONT-PAGE):

In United States v. Rashid, 2023, a fraud ring billed $11 million in phantom genetic tests using nothing but stolen MBIs from seniors who “confirmed their information over the phone.”

No hacking.
No breaches.
Just a phone call and legal ignorance.

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WHY THIS KEEPS HAPPENING

Because America treats “elder scams” as a social problem, not a legal infrastructure failure.

The laws exist —
18 U.S.C. § 912 (Impersonation)
18 U.S.C. § 1028A (Aggravated Identity Theft)
18 U.S.C. § 1347 (Healthcare Fraud)—

But enforcement is reactive.
Never preventative.

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HOW TO PROTECT YOURSELF & YOUR FAMILY:

1. Freeze Medicare communications.
Set a written directive that all calls must go through a designated representative.

2. Treat every Medicare call as fraud by default.
Because legally, it is.

3. Create a family “fraud firewall.”
Appoint one person to approve all insurance, benefits, and healthcare paperwork.
(Even better: set it up in your estate plan.)

4. Educate your elders.
Not with fear — with facts.
The law is clear:
Medicare never calls. Scammers always do.

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THE BIGGER ISSUE (No One Dares Say This):

We built a system where scammers understand Medicare rules better than seniors, caregivers, and even lawyers.

That ignorance fuels a $100B fraud economy.

I’m here to help people shut it down. Have you been impacted by Medicare Scams? Comment below or send me a message – I’d love to hear about it, conduct some research, and publish content to empower others to avoid these scams.

Thank you,
Sid Peddinti, Esq.
Inventor, Tax & IP Lawyer, AI Innovator, Legal Mythbuster™

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Related Topics

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#ProbateAwareness
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#NonprofitEducation
#RegulatoryCompliance
#FiduciaryStandards
#Medicare
#MedicareFraud
#MedicareScams

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