Medicare and hospice scams are exploding—here’s how to spot them

Scams aren’t new. But this version? It’s different. We’ve reached the point where fraud isn’t just happening in sketchy emails or obvious fake texts. It’s sneaking in through voicebots that sound human, official letters that look real, and healthcare providers that exploit broken systems for profit.

Right now, one of the fastest-growing scams in the U.S. is hiding behind something that’s supposed to care for people in their final days: hospice. Add in the rise of Medicare robocall schemes, and you’ve got a full-blown exploitation mess—impacting not just seniors, but the adult kids trying to help manage their care.

This is about health, yes. But it’s also about money, trust, and control. And if you think it’s not your problem because you’re not on Medicare, think again. These scams hit entire families, especially younger generations helping their parents or grandparents navigate the system.

Let’s break it all down.

Hospice care is supposed to be for people with six months or less to live. It’s meant to support comfort, dignity, and quality of life when medical treatment stops making sense. But in the current scam wave, people who are very much alive—and not terminally ill—are being fraudulently enrolled into hospice by providers looking to bill Medicare for fake services.

Sounds impossible? It’s not. Here’s how it happens.

A scammer (or an aggressive sales rep from a shady provider) gets access to your Medicare number. Maybe from a robocall. Maybe from a form your mom filled out online to get a “free back brace.” They then pass that info to a hospice company that fills out enrollment paperwork and starts billing the government.

You might never know it’s happening until a nurse shows up at the house offering care your parent didn’t ask for. Or worse—your parent is denied curative treatments or prescriptions because the system now thinks they’re “end-of-life.”

Hospice fraud is more than billing abuse. It’s real-world harm. It can block medical treatment, interfere with insurance coverage, and erase a person’s legal autonomy to manage their own care.

This isn’t some old-school scam with paper trails and faked signatures. This is a digitally optimized hustle. Since COVID, telehealth has exploded. Remote care is normalized. AI robocalls are common. Seniors are used to getting medical info over the phone, and their adult kids are juggling appointments, bills, and benefits online.

At the same time, the U.S. hospice system is vulnerable. Oversight is weak. Billing requirements are murky. Some hospice operators see Medicare’s end-of-life benefit as free cash, especially when few patients—or families—know how the system even works. The setup is perfect for abuse: elderly patients, confused paperwork, digital impersonation, and a payment model that rewards high enrollment regardless of outcome.

You know those spam calls that say your car warranty is about to expire? Now imagine one that says your Medicare benefits are being reviewed. Except it sounds legit. The voice is pleasant. The tone is urgent—but not alarming. They say they’re calling from Medicare (they’re not) and need to “verify your coverage” or “send you updated benefits.”

They ask for your Medicare number, sometimes your Social Security number. If you give it, it’s game over. The scammer can now sign you up for all kinds of services—telehealth, durable medical equipment, drug delivery, or hospice—none of which you agreed to. And each one results in a fat payout from Medicare to the fake provider.

One call. One number. Thousands of dollars.

This isn’t just a retiree issue. More than 30% of Americans under age 40 help manage healthcare or finances for an older adult. You might be scheduling doctor visits for your mom, translating insurance bills for your grandfather, or filling out “just one more” online form for your uncle’s diabetes monitor. Scammers know this. They use that dynamic to make their grift more convincing.

They spoof caller ID so it looks like it’s coming from a real provider. They use phrases that sound medical—but vague. They push urgency: “This coverage is expiring.” “This device is essential.” “This service is fully approved.”

And because you’re juggling a million things, maybe you give them the info to make them go away. Boom. The fraud is in motion. If that wasn’t bad enough, you might not even know it happened until the damage is done—like when your mom’s doctor says she can’t be prescribed a new medication because she’s enrolled in hospice.

Now you’re in paperwork hell trying to reverse a lie you didn’t know was told.

According to the Office of Inspector General (OIG), hospice-related fraud cost the Medicare system over $3 billion in 2023 alone. Most of it came from shady billing—services that weren’t provided, patients who weren’t eligible, care that never happened. But it’s not just a cost issue. It’s a care issue.

When a person is falsely enrolled in hospice, their primary care often halts. Some get dropped by their existing doctors. Others can’t refill essential medications. They lose access to hospital treatment. And they’re funneled into a system built around death—even when they’re not dying.

Imagine being 67, recovering from surgery, and suddenly your medical file says you’ve entered hospice. Now imagine being their kid trying to fix that with four hours of sleep and no legal background. That’s what families are dealing with. And the system isn’t catching up.

Part of the problem is speed. Scammers move fast. They use digital tools. They test scripts. They iterate. Meanwhile, regulators take months to investigate, verify fraud, and shut down bad actors. By the time one scam hospice is shut down, three more have opened under new names.

It’s the same whack-a-mole pattern we’ve seen in crypto rug pulls, fake shopping sites, and phone-based cash app scams. But this time, it’s wrapped in medical language—and backed by Medicare payouts. Even when a fraud report is filed, the process to fix the damage can take months. In the meantime, patients are stuck with interrupted care, messed-up billing, or worse—blocked treatment. And if you think law enforcement is aggressively pursuing these cases? Most aren’t even charged. The system is overloaded.

Let’s get practical.

First, the golden rule: Medicare doesn’t call you. Ever. If someone says they’re from Medicare and they’re calling to verify your number or benefits, it’s a scam.

Second: Never give out your Medicare ID or Social Security number to anyone who contacts you first. Even if they sound polite. Even if they say it’s urgent. Especially if they mention “hospice benefits.”

Third: Check your Medicare Summary Notice (MSN) regularly. It shows what services were billed. If you see hospice enrollment and no one in your family is in hospice, file a fraud report immediately.

Fourth: Talk to your parents or grandparents. Show them what scam calls look like. Save audio recordings if possible. Use call filters or apps that block robocalls automatically.

And if you’re filling out forms for them online? Only do it on official .gov sites—or through known, trusted providers. This is one of those moments where a two-minute check can save you weeks of nightmare.

If your parent is suddenly listed as being in hospice when they’re not, you need to act fast:

1. Call 1-800-MEDICARE and request a review of the account.
2. Contact your state’s Senior Medicare Patrol (SMP) for help reversing the enrollment.
3. File a fraud complaint with the Office of Inspector General (OIG).
4. Reach out to their primary doctor to notify them of the fraud and resume needed care.
5. Watch for duplicate bills or suspended prescriptions—these are often the first signs that something’s gone wrong.

It’s a lot, we know. But the sooner you start, the more likely you are to stop additional billing and get the record corrected. And while you’re at it, flag the scam so others don’t fall for it.

This isn’t the only Medicare scam happening—but it’s one of the most dangerous. And it won’t be the last. The combination of AI voice tech, broken healthcare billing systems, and digital targeting means this kind of fraud is going to evolve. Fast.

We need to get smarter—at every level. That means:

• Teaching parents and older relatives how to ignore or report scam calls.
• Using spam filters and robocall blockers across family phones.
• Watching for suspicious mail or unexpected Medicare forms.
• Keeping our own eyes open when we help family with online forms or healthcare choices.

You don’t need to be a cybersecurity expert. You just need to stay curious, cautious, and slightly skeptical. If something feels off? Trust that feeling. Verify. Slow down. Ask questions.

Medicare and hospice scams aren’t a fluke. They’re a symptom. When healthcare gets too confusing, and regulation can’t keep up with tech, scams don’t just thrive—they become normalized. They hide inside helpful voices, fake websites, and medical terms that sound official but mean nothing. This isn’t just about seniors getting tricked. It’s about trust in systems that are supposed to protect the most vulnerable—and how easy it is for that trust to be broken.

As Gen Z and millennials take on more caregiving roles, we need to shift the way we talk about scams. They’re not just “annoying calls.” They’re silent attacks on care, stability, and dignity.

The solution isn’t fear. It’s awareness. Documentation. Coordination. And yeah—sometimes it’s just hanging up the phone. Because behind that pleasant-sounding voice might be someone trying to make your mom’s death into a payout she never agreed to.

Let’s not let them win.