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Medicare Drug Program News
Medicare Makes $50
Million Mistake by Refunding Drug Program Premiums
230,000 senior
citizens will have to repay the money
 August 23, 2006 – The Medicare drug program,
already under criticism for being a confusing program for many senior
citizens, has just become a lot more confusing for 230,000 already in
the program. The government has mistakenly sent these seniors checks
totaling about $50 million supposedly reimbursing them for monthly
premiums paid this year. The checks come with a letter that says their
monthly premiums will no longer be deducted from their Social Security
check – also an error.
Mark McClellan, administrator of the Centers for
Medicare and Medicaid Services, told the Associated Press that people
who get the check need to know two things. One, the money has to be
returned. Two, their prescription drug coverage will continue.
"It's very important for people to know their
coverage is continuing," he said. "There's no disruption at all."
The checks were mailed last week and, after
catching their mistake, Medicare sent another letter yesterday
explaining their error. It also tells them their drug coverage will
continue, only if they repay the money.
The AP says the average overpayment was about
$215.
"McClellan said his agency will make sure that
insurers who administer the new drug benefit continue to get paid for
the beneficiaries caught up in the error. He said that his agency was
responsible for the error and that the subsequent letter contains an
apology," the AP reports.
McClellan also explained to the AP that the error
occurred when the agency was transmitting information to Social Security
on deductions for the 5 million who pay for their drug plan with a
deduction from their Social Security check. These people were eliminated
and deductions will not resume until October, he said.
More detailed information is being made available
by Healthcare Industry See:
-- Medicare Reimbursements News -
http://health.einnews.com/news/medicare-reimbursements
-- Medicare News -
http://health.einnews.com/news/medicare
-- Medicare News Sections by State -
http://health.einnews.com/category/medicare
-- Medicare Drug Plan News -
http://health.einnews.com/news/medicare-drug-plan
>> For the AP report in the Washington Post –
click here.
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