Page 14 November 14, 2019 EL SEGUNDO HERALD
Health & Wealth
Seniors Finance
Protecting Yourself
from Medicare Fraud
Every year, many seniors are targeted by
scammers who want to steal their Medicare
numbers to do things like rack up fake health
care charges and commit identity theft. These
scams hurt seniors and other people eligible
for Medicare, cost taxpayers money, and result
in higher health care costs for everyone. The
good news is that you can protect yourself
from fraud and help Medicare stop scammers
in their tracks.
How to Spot Medicare Fraud
The first step in protecting yourself from
Medicare fraud is knowing how to spot it.
Over time, scammers have become very
sophisticated and advanced. One of the latest
scams you should look out for concerns
genetic testing. Scammers are offering “free”
genetic tests and claiming Medicare will cover
it — so they can get your Medicare number
and use it to commit fraud and identity theft.
Other Medicare scams include offers for
free or reduced-price medical equipment,
consultations, or health services. These scams
can happen anywhere, including through
telemarketing calls, health fairs, and even
knocking on doors.
Last year, the Centers for Medicare &
Medicaid Services (CMS) removed Social
Security numbers from all Medicare cards.
Even with this change, people with Medicare
should still guard their Medicare card and treat
it like a credit card, check Medicare claims
summary forms for errors, and be wary of
any unsolicited requests for your Medicare
number. Medicare will never call beneficiaries
to ask for or check Medicare numbers.
To protect yourself from Medicare fraud,
keep these things to “do” and “don’t do”
in mind:
• DO protect your Medicare number and
treat your Medicare card like it’s a credit card.
• DO remember that nothing is ever “free.”
Don’t accept offers of money or gifts for
free medical care.
• DO review your Medicare claims for errors
and problems, including things like fake
charges, double billing or other fraudulent
activity, and waste or abuse.
• DO visit www.medicare.gov/fraud to learn
more about how you can protect yourself
from Medicare fraud.
• DON’T give your Medicare card or
Medicare number to anyone except your
doctor or people you know should have it.
• DON’T accept medical supplies, equipment,
or genetic testing kits from door-to-door
salesmen or solicitors at a mall or fair.
• DON’T let anyone persuade you to receive
health care services you don’t need, such as
genetic testing. Only make these decisions
with your doctor.
Reporting Medicare Fraud
If you think you may have spotted fraud,
you should report it right away. No matter
how minimal the information you share is,
it could be the missing piece to stopping
the next fraud scheme. If you are a victim
of fraud, know that you won’t be penalized
or lose your coverage for reporting it. Even
if you are not a victim, it’s important to
report any fraud scams you encounter to
Medicare. Report suspected fraud by calling
1-800-MEDICARE or online through the
Office of the Inspector General.
– Information provided by the U.S.
Department of Health & Human Services •
$
10 Steps To A
DIY Financial Plan
Did you know that 78 percent of people
with a financial plan pay their bills on time
vs. only 38 percent of people who don’t have
a plan? Or that 68 percent of planners have
an emergency fund while only 26 percent
of non-planners are prepared to cover an
unexpected cost? Stats like these from the
2019 Schwab Modern Wealth survey reinforce
my belief that everyone — no matter
their financial situation — can benefit from
a financial plan.
So why aren’t more people planners?
Often it’s because either they don’t think
they have enough money or they think a
financial plan costs too much. But neither
is the case. In fact, you can map out your
own financial plan, and it won’t cost you
a penny. Here’s how to get started with a
DIY plan.
• Write down your goals — Start by
asking yourself what you want your money
to accomplish. What are your short-term
needs? What do you want to accomplish in
the next 5 to 10 years? What are you saving
for long term? Get specific and write
everything down.
• Create a net worth statement — Achieving
your goals requires understanding where
you stand today. So start by listing your assets
— bank and investment accounts, real
estate and valuable personal property. Now
list all your debts: mortgage, credit cards,
student loans — everything. Subtract your
liabilities from your assets and you have
your net worth. If you’re in the plus, great.
If you’re in the minus, that’s not uncommon,
but it points out that you have some work
to do. Use this number as a benchmark to
measure your progress.
• Review your cash flow — Cash flow
simply means money in (your income) and
money out (your expenses). How much
money do you earn each month? Be sure to
include all sources of income. Now look at
your expenses, including any that may only
come up once or twice a year.
• Zero in on your budget — Your cash-flow
analysis will let you know how much you’re
spending. Focusing on your budget will let
you know where that money is going. Write
down your essential expenses such as mortgage,
insurance, food, transportation, utilities
and loan payments. Don’t forget periodic
payments and be sure to include savings.
Then write down nonessentials — restaurants,
entertainment, even clothes.
• Focus on debt management — Debt
can derail you, but not all debt is bad. It’s
high-interest consumer debt like credit cards
that you want to avoid. Try to follow the
28/36 guideline that no more than 28 percent
of pre-tax income goes toward home debt,
no more than 36 percent toward all debt.
Look at each item to decide when and how
you’ll pay it down.
• Get your retirement savings on track —
Whatever your age, retirement saving needs
to be part of your financial plan. Calculate
how much you will need to comfortably retire
and contribute to a 401(k) or other employersponsored
plan or an IRA. The earlier you
start, the less you’ll have to save each year.
¶• Check in with your portfolio — If you’re
an investor, understand that market ups and
downs can impact the relative percentage of
stocks and bonds you own — even when
you do nothing. So review and rebalance on
at least an annual basis. (And if you’re not
an investor, think carefully about becoming
one — the sooner the better.)
• Review your insurance — Insurance is
an important part of protecting your finances.
Health insurance is a given, and most of us
also need car and homeowner’s or renter’s
insurance. While you’re working, disability
insurance is a smart move. Finally, you
should consider life insurance, especially if
you have dependents.
• Know your income tax situation — The
Tax Cuts and Jobs Act of 2017 changed several
deductions, credits and tax rates beginning in
2018. To make sure you’re prepared, review
your withholding and estimated taxes, and
explore potential tax credits.
• Create or update your estate plan — At
a minimum, have a will to name a guardian
for minor children. Check that beneficiaries
are up to date on all retirement accounts
and insurance policies. Complete an advance
healthcare directive and assign powers of
attorney for both finances and healthcare.
A financial plan can be especially important
if you don’t have a lot of money because
it can help you get on the path to greater
financial strength. Think of it like a roadmap.
Whether you need to reduce spending
and debt, up your savings, or just refine the
details, once you have a plan you’ll be on
the road to success.
Have a personal finance question? Email
askcarrie@schwab.com. Carrie cannot respond
to questions directly, but your topic may be
considered for a future article. For Schwab
account questions and general inquiries,
contact Schwab. For more information visit
SchwabMoneyWise.com. •
“You know, for most seniors Medicare
is their only form of health care.”
– Corrine Brown
Cybersecurity from page 4
important data (contacts, financial information,
calendars) and require protection like
any other device.
Q: A scammer creates a fake email and
sends it to thousands of people. What is
this type of attack called?
Answer: Phishing: a type of social engineering
that often manipulates human impulses,
such as greed, fear, or the desire to help others.
Q: What is the term for harmful software
that seeks to damage or exploit the
machines that run it?
A: Malware, which is short for malicious
software. Tip: stay of sketchy websites.
Q: An attacker goes to a local coffee shop
and creates a wireless network using the
shop’s name. And unsuspecting customers
log on. What is this type of attack called?
A: Spoofing. Before logging onto a public
network, be sure it is the correct one.
Q: After clicking an advertisement on an
unsecured website, your computer freezes.
A message appears demanding money to
unlock your computer. What kind of attack
are you experiencing?
A: Ransomware. These attacks are aimed at
institutions and large organizations that need
access to their data and payment systems
restored immediately.
Q: Which federal agency has been tasked
with improving national cybersecurity?
A: The Department of Homeland Security. •