New Medicare Cards Are on the Way
In the coming months, they will reach retiree mailboxes.
New Medicare cards will be mailed between now and next April. They have an 11-digit ID number instead of your SSN, and they are made of paper rather than plastic. This new 11-digit number is called the Medicare Beneficiary Identifier (MBI).
If you have recently moved, be sure to provide the Social Security Administration with your new address so that your new card can reach you without delay. Once you get the new card, be sure to destroy the old one, and guard your MBI as you would guard your SSN.[1,2]
As you await the new card, watch out for fraud. Ironically, this preventive measure against identity theft is motivating criminals, who see an opportunity to confuse and exploit seniors during the transition.
Some Medicare recipients could fall prey to these thieves. In a March AARP poll of Americans age 65 and older, 76% of respondents said that they were unaware of (or uninformed about) the new ID cards. When asked if they believed Medicare would charge them a $25 processing fee to get their new card, 63% agreed or were unsure. Fifty-six percent of the respondents thought Medicare might call them and ask for their Social Security number as a condition of issuing the new card.[3]
The truth is that to get your new Medicare card, all you have to do is wait (and make sure that your mailing address is up to date). If someone calls you and tells you that you need to verify your Social Security number with Medicare before you can get your card, hang up. Medicare does not contact enrollees by phone to demand personal information. In addition, ignore emails or calls that ask you to pay an activation fee to receive your card. Claims that you can obtain your card only if you disclose financial information are also false.[1]
Are you enrolled in a Medicare Advantage plan? If so, go ahead and keep using the ID card that the plan gave to you. A new Medicare card will be coming your way, and you will want to retain it with your important papers, though you may not be using it with all providers.[1]
The new cards will be mailed in stages to different regions of the country. You will be able to use your new Medicare card as soon as you receive it in the mail. Beginning January 1, 2020, you will need to use the MBI on your new ID card to submit a claim.[4]
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Citations
1 - money.cnn.com/2018/04/09/news/economy/medicare-card-scam/index.html [4/9/18]
2 - al.com/news/index.ssf/2018/04/medicare_delays_mailing_new_id.html [4/13/18]
3 - aarp.org/research/topics/economics/info-2018/2018-medicare-scams.html [4/5/18]
4 - cms.gov/Medicare/New-Medicare-Card [4/19/18]
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country's leading professional association of fee-only financial advisors.