Fake Chip Cards and Hospice Fraud Are the New Medicare Scams

Someone calls and says Medicare is sending everyone a new plastic card with a security chip, and they just need to confirm your Medicare number. Another caller offers a free knee brace or a free genetic test. A third says your coverage will be cancelled today unless you verify your details. Every one of these is a Medicare scam, and in 2026 they are hitting older Americans harder than ever, right as real Medicare changes make the lies sound believable.

At The Scam Exposed we track the calls and texts our readers report every day, and Medicare fraud is one of the most consistent themes. What surprises most people is that the damage often has nothing to do with a stolen dollar. Criminals use your Medicare number to bill for things you never got, and that can use up your own benefits and block care you actually need.

This guide puts everything in one place: how the scams work, the exact scripts being used right now, the fake card that is circulating this year, the warning signs, and what to do if you already gave your number to someone.

What is a Medicare scam?

A Medicare scam is any trick designed to get your Medicare number, your personal details or your money by pretending to be Medicare, a Medicare plan, a health provider or a government office. Some scams aim for a quick payment. Most aim for your Medicare Beneficiary Identifier, the number printed on your card, because that number can be used to bill Medicare again and again.

The contact can come as a phone call, a text, an email, a letter, a social media ad, a booth at a health fair or even a knock on your door. The story changes, but the goal is always the same: get you to hand over your number or pay something you do not owe.

The good news is that Medicare follows a few simple rules, and every scam breaks at least one of them. Once you know those rules, you do not have to work out whether a caller is real. You just apply the rule and hang up.

How big is the problem?

Medicare is the largest health insurance program in the country, and that makes it one of the biggest targets for fraud.

The catheter case in the GAO report is worth pausing on. Those billions were charged against real people's Medicare numbers. Most of those people had no idea. The Administration for Community Living has also described a provider that billed Medicare over $9 million for 7,200 skin substitute bandages for one patient over three months.

Fraud on this scale does not only hurt taxpayers. It changes what Medicare believes about you, and that can come back to hurt your care.

Why your Medicare number is the target

Your Medicare card looks harmless. There is no PIN, no balance and nothing to spend. To a criminal, though, it works like a blank check. Medicare pays claims submitted under that number, so someone can bill for equipment you never received, tests you never had or care you never asked for. Then they can sell your number so someone else can do it again.

A stolen credit card is usually cancelled within days. A stolen Medicare number can keep working for months, because most people never check what is being billed under it. That is why criminals often value Medicare numbers more than card numbers.

The harm also shows up in strange ways. If someone bills for a knee brace in your name, and later your doctor orders one you really need, Medicare may refuse it because its records say you already have one. If someone enrolls you in hospice, routine claims can start getting denied. The damage is to your benefits, not just your bank account.

The Medicare scams going around in 2026

1. The plastic or chip card call

A caller says Medicare is switching to plastic cards with a security chip and needs to confirm your details before yours ships. No such card exists. We cover this one in detail in the next section.

2. Hospice enrollment fraud

Criminals enroll people in hospice care without their knowledge, using stolen Medicare numbers and shell hospice companies. Once Medicare records show you in hospice, regular treatment claims can be refused. This pattern is serious enough that CMS put a six month nationwide moratorium on new hospice and home health agency enrollments in May 2026.

3. Free equipment and free tests

A call, text, online ad or health fair booth offers a free back brace, knee brace, diabetic supplies, a cancer screening, a genetic test or a DNA cheek swab. All they need is your Medicare number. Sometimes something really does arrive. It is billed to Medicare at many times its value, and it can block you from getting the real item later.

4. The audit or verification call

A caller says they are from Medicare or Social Security and that your account is under review, or that there is a problem with your benefits. They ask you to confirm your Medicare number or Social Security number. Our guide to fake Medicare audit and Social Security transfer calls covers this version in depth.

5. The plan enrollment call

Someone offers to help you switch plans, re-enroll, or claim extra benefits such as a bigger grocery allowance or free dental work. This spikes during Open Enrollment, when real plan changes are happening and confusion is highest.

6. The premium adjustment call

Higher income beneficiaries are told they owe an immediate premium adjustment and must pay now to avoid losing coverage. Real income related premium adjustments arrive by mail from Social Security. They are never demanded over the phone.

The plastic chip card scam, explained

This is the scam our readers ask about most in 2026, because it is wrapped around something real.

The Centers for Medicare and Medicaid Services is reissuing cards with new Medicare Beneficiary Identifiers to roughly 1.3 million people. The new numbers took effect on April 14, 2026. The reason is a large fraud case in which more than 300 people across all 50 states were charged with Medicare and Medicaid fraud, and numbers exposed in that case are being replaced as a protective step. California Health Advocates has a clear summary of the reissue.

Four things are true about the real replacement cards:

• They are paper. Not plastic, no chip, no hologram.
• They arrive with a letter from Medicare explaining why a new number was issued.
• Nothing needs activating. There is no number to call, no website to visit and no identity to confirm.
• Not everyone gets one. Most people keep the card they already have.

The scam versions contradict each other, which is how you know none of them are real. The Senior Medicare Patrol lists the scripts currently in use:

• "You are getting a new plastic Medicare card." No such card exists.
• "Medicare is switching to a card with a chip." Also not real.
• "It is a new year, so you need a new card." Medicare cards do not expire each year.
• "We need your Medicare number to check whether your new card was sent." Medicare already knows your number.

There is also a mailed version. Fake glossy plastic cards, sometimes with a fake hologram, are being posted out with a letter telling you to call a number to activate. The Senior Medicare Patrol has a direct warning: if you are mailed a plastic Medicare card, do not activate it.

A real case: when fraud blocks your own care

Lynn Ianni went to what should have been her last physiotherapy appointment after a shoulder injury. Her provider told her Medicare had refused the claim because she was enrolled in hospice care. She had never chosen hospice.

The hospice she was supposedly enrolled in was listed on Medicare's own website with a valid provider number and a named chief executive. It looked completely real. Untangling it took months, and during that time she could not get her own medical care paid for.

That is the part most warnings leave out. Medicare fraud is usually described as stolen money. The worse outcome is that someone else uses up your benefits, and the system stops paying for the care you actually need. It is why every Medicare scam alert we publish leads with your benefits, not just your dollars.

How Medicare scams reach you: phone, text, mail and the front door

Most people picture a phone call, but Medicare scammers use every channel they can. Knowing what each one looks like makes them much easier to ignore.

Phone calls

Calls are still the most common. Caller ID may show "Medicare," a Washington DC number or a local area code. None of that proves anything, because caller ID is easy to fake. Robocalls often start with a recorded message about your benefits and ask you to press 1 to speak to an "agent." Pressing anything tells the scammer your number is active, so it is better to just hang up.

Text messages

Texts claim your Medicare card has been suspended, that you are owed a refund, or that you qualify for new benefits. They include a link to a site that copies the look of Medicare.gov and asks for your Medicare number, Social Security number and bank details. Real Medicare does not text you links asking for personal information. Delete the text and forward it to 7726 (SPAM) to report it to your carrier.

Mail

Fake letters look official, with eagle logos, case numbers and urgent deadlines. Some include the fake plastic card described above. Others claim you owe money or must call to keep your coverage. Check any letter by calling 1-800-MEDICARE yourself, never the number printed on the letter.

At your door or at events

Some scammers show up in person, claiming to be from Medicare to check your card or to deliver equipment. Others set up booths at health fairs, senior centers or shopping centers offering free screenings. Medicare does not send people to your home, and a free screening that requires your Medicare number at a parking lot booth is a red flag.

Online ads and social media

Ads on social media promise extra Medicare benefits, large grocery allowances or cash back. Clicking leads to a form or a call center that collects your number and enrolls you in a plan you did not choose, or sells your details. Our guide on how to check social media ads for scams shows what to look for.

Red flags: what Medicare will never do

If any of these happen, you can hang up without a second thought.

• Call you first to ask for your Medicare number. Medicare already has it and does not need you to read it back.
• Offer a plastic card or a card with a chip. No such program exists.
• Ask you to activate a card. Real cards work the day they arrive.
• Sell you anything by phone. Not a plan, not equipment, not a test.
• Ask for payment over the phone in any form, including gift cards, wire transfers, crypto or payment apps.
• Threaten to cancel your coverage today. Benefits do not work that way.
• Ask for your Social Security number or bank details to "verify" or "update" anything.
• Show up at your door to check your card or deliver equipment you did not order.
• Offer "free" medical equipment or tests in exchange for your number.

If a government office really needs something from you, a letter comes first, and it says what is needed and how to respond through official channels.

Real Medicare contact vs a scam

Open Enrollment: the busiest scam season

Medicare Open Enrollment runs from October 15 to December 7 each year. During those weeks, real plans really do advertise, agents really do call people who asked to be contacted, and many beneficiaries are comparing options. Scammers hide inside that noise.

Watch for callers who say you must switch plans today, who promise cash back or a huge grocery card, who claim to be "from Medicare" while selling a private plan, or who ask for your Medicare number before you have even agreed to anything. Plan comparisons can be done safely at Medicare.gov or through your State Health Insurance Assistance Program, which gives free, unbiased advice.

A simple rule works here too: never give your Medicare number to anyone who called you. If you are interested in a plan, look it up yourself and call the plan or Medicare directly.

How to protect yourself and your family

1. Treat your Medicare number like a credit card number. Share it only with your doctors, pharmacists and plans you chose yourself.
2. Use one sentence on every suspicious call. "I do not give my Medicare number over the phone. I will call Medicare myself." Then hang up and dial 1-800-MEDICARE (1-800-633-4227).
3. Never call back a number from an unexpected call, text or letter. Use the number on your card or on Medicare.gov.
4. Say no to "free" equipment and tests. If you need something, get it through your own doctor.
5. Do not activate any plastic Medicare card. Report it instead.
6. Keep the real numbers by your phone. 1-800-MEDICARE, the Senior Medicare Patrol at 1-877-808-2468, and the National Elder Fraud Hotline at 1-833-372-8311. Our free printable scam safety card has room for them.
7. Check unknown numbers before calling back. Use our free robocall checker to see whether others have reported the caller.

The five minute check that catches most fraud

Warning lists help, but the habit that actually catches Medicare fraud is reading your Medicare Summary Notice. It arrives by mail every three months, or you can see your claims any time by signing in at Medicare.gov. It takes about five minutes.

Look for:

• Providers you have never visited
• Dates when you had no appointment
• Equipment you never received
• The same item billed twice
• Any mention of hospice, home health or a service you did not choose

Keep a simple diary of your appointments and deliveries so you have something to compare against. That one habit turns a confusing statement into a quick check. If something looks wrong, call the provider first, then 1-800-MEDICARE, then the Senior Medicare Patrol.

Already gave out your number? Do this now

1. Call 1-800-MEDICARE and say your number may have been compromised. CMS can flag your account and issue a new Medicare Beneficiary Identifier if needed.
2. Report it to the Senior Medicare Patrol at 1-877-808-2468 or smpresource.org. SMP has offices in every state and works Medicare fraud cases directly.
3. Report to the HHS Office of Inspector General at oig.hhs.gov, which investigates health care fraud.
4. Report to the FTC at ReportFraud.ftc.gov.
5. If you paid money, call your bank or card issuer right away and ask them to stop or dispute the payment.
6. If you also gave your Social Security number, start a recovery plan at IdentityTheft.gov and consider a free credit freeze with Equifax, Experian and TransUnion.
7. Watch your statements for a full year. Fraudulent billing often shows up weeks or months later.

Anyone 60 or older can call the National Elder Fraud Hotline free at 1-833-FRAUD-11 (1-833-372-8311). You will find more official contacts on our fraud help resources page.

Watch for the follow up scam

Once a scammer knows you responded, your name often goes on a list that gets sold. Expect follow up calls from people claiming to be Medicare investigators, lawyers or "fraud recovery" services who say they can fix your record or get money back for a fee. Real agencies do not charge to fix fraud on your account.

Some callers even pretend to be the Senior Medicare Patrol or the HHS Inspector General. If someone calls claiming to be one of these offices, hang up and call the official number yourself. Our guide on recovery scams that target past victims explains how this second wave works.

If you help care for an older parent, one sentence carries most of the protection: Medicare never phones asking for your Medicare number, and your card is paper. Then tell them that hanging up on a real government office by mistake causes no harm at all. Our senior scam trends guide covers more of the warning signs to watch for.

Frequently asked questions

How we researched this article

This guide is based on official guidance and data from the Centers for Medicare and Medicaid Services, the Government Accountability Office, the Administration for Community Living, the Senior Medicare Patrol and the HHS Office of Inspector General, along with Medicare scam reports from our readers. Every statistic links to its original source. We do not accept payment from any company mentioned here. If you spot an error or have new information, please email [email protected] and we will review it under our fact checking policy.

This article is for general consumer education and is not legal, medical or financial advice. If you think your Medicare number has been misused, contact 1-800-MEDICARE and the Senior Medicare Patrol.