State insurance commissioner warns of Medicare fraud

Complaints of deceptive practices aimed at Georgia's seniors, have prompted the Insurance Commissioner to initiate a task force.

According to Georgia's Insurance Commissioner, the bulk of deceptive practices complaints, concern the federal Medicare advantage program.

Designed by the Bush Administration to stimulate competition in the healthcare marketplace, the program permits private insurance companies to sell their own brand of medical coverage to seniors.

The State Insurance Commissioner's office says it has received hundreds of complaints about fraud.

Apparently agents pretend to sell seniors a less costly plan.

Then, in some cases, forge signatures on contracts that bind seniors to more expensive (and sometimes less comprehensive) medical plans.

Consumer advocates say lucrative signing bonuses for agents makes seniors an easy target for fraud.

Officials say most seniors won't know they've been defrauded until they visit the doctor and their insurance card is rejected.

An investigator from Georgia's Insurance Department will testify on Medicare fraud before the U.S. Senate at a hearing this week.