How to Avoid This Genetic Testing Scam That Targets Seniors
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Hallie Ayres
Contributing Writer
CBS News recently reported the results of an investigation into a large-scale, wide-reaching Medicare fraud scam that has been affecting dozens of people across the U.S. The story illustrates the struggles faced by senior citizens who were targeted primarily by a company called Genexe Health, which claims to be a genetic testing “one-stop shop.”
Genexe, CBS News claims, is one marketing company within a vast network of companies that has been hiring local recruiters within various cities to set up promotional tables and stands near senior centers, retirement communities and hospital districts, or to go door to door in low-income neighborhoods. Recruiters for Genexe offer quick cheek swabs that they claim can tell their patients if they carry genes that could potentially predispose them to a cancer diagnosis. Genexe recruiters also assure their customers that they will receive their test results in four to six weeks and that the tests will be absolutely free because Medicare will cover the expense.
A woman who worked as the office manager for a Genexe office in Texas told CBS News that Genexe swabbed more than 2,300 people during her three months of working there. She mentioned that recruiters were promised $200 per swab as payment, yet they rarely received any payout while managerial staff continued to earn generous sums. Genexe, which is headquartered in Denver, released a statement saying they perform a very limited service which does not include testing samples or submitting Medicare claims.
While the cancer test lures participants in, the overarching goal of the Genexe scam is for the recruiters to gain victims’ Medicare account information. Although paying people for their participation in medical tests is a violation of federal anti-kickback laws, the most lucrative part of the scam comes into play when the perpetrators of the scheme commit identity theft and bill the government for unneeded medical tests, according to Business Insider. When the government issues a refund or reimbursement, it is the perpetrators who collect the payout, while the victims are left with unexpected Medicare charges.
In all the cases that CBS News reported, the customers never received their test results and, instead, found their Medicare accounts charged for thousands of dollars’ worth of genetic tests. A couple in Florida, said they were billed around $19,000, while victims in Georgia, Texas and North Carolina admitted to receiving Medicare bills for $7,000, more than $10,000, and $21,000, respectively.
Attorney General Andy Beshear of Kentucky released a warning statement that noted reports of people in a van driving around offering $20 to Medicaid recipients who were willing to give them a DNA sample and health insurance information. These fraudsters claimed to work for Passport Health Plan, a local Medicaid insurer. Louisville City Councilwoman Barbara Sexton told Bloomberg News reporters that representatives for Genexe Health had also been seen operating in the city.
In an email to Bloomberg News, David Palladino, Genexe’s general counsel, wrote, “Genexe categorically denies any/all involvement with any of the activities represented/referenced” and that the scammers in Louisville “are completely unaffiliated with Genexe.” Ben Adkins, a spokesman for Passport Health Plan, also defended his company in an email to Bloomberg News stating, “Passport Health Plan is in no way affiliated with activity and we urge caution for anyone who may come into contact with them.”
The article in Bloomberg News suggests that Genexe’s scheme has its origins in an announcement made last year by the Centers for Medicare and Medicaid that stated that Medicare would now cover genetic testing for cancer through FDA-approved tests. Bloomberg News also conjectures that the scam has been successful due to recent popular interest in genetic testing kits that disclose information about health and ancestry.
Fraud schemes often target government programs like Medicare and Medicaid. According to a 2018 report by the Office of Inspector General of the U.S. Health and Human Services Department, Medicare has been fraudulently billed for more than $13 million since 2007, leading to the filing of over 1,600 cases by a Medicare fraud task force.
According to CBS News, Genexe Health now faces a federal investigation, and recipients of Medicare have been warned about the scam and advised to not receive any supposed genetic testing from anyone other than a known and trusted doctor.
Here are four simple tips to share with your friends, family and community to keep them safe from scams like this one:
Never accept or participate in any genetic tests or kits you receive in the mail.
Be cautious about who you share your medical information with, especially if you are unexpectedly approached.
Talk with your trusted physician before requesting any type of medical genetic test.
Be wary of “free” genetic tests, especially if you have to surrender personal identifying information in order to get the test.