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Medicare Drug Program News
Senate Aging Chair's Conflict with Social Security,
CMS Over Drug Program Billing Appears Solved
October 2, 2006 – The Medicare drug program billing
problems receiving the most attention has been the mistaken refund of
$50 million to 230,000 enrollees, but problems impacting even more
senior citizen has been the battle ground between the chairman of the
Senate's committee on aging and the agency heads of the Social Security
Administration and the Centers for Medicare & Medicaid Services.
Friday,
Sen. Gordon Smith (R-Ore.) said the agencies have drafted a plan to
correct a problem that was resulting in some seniors temporarily losing
their entire Social Security check, according to a report by KaiserNet.org.
 Agreement
Reached To Resolve Automatic Social Security Check Deductions for
Medicare Prescription Drug Benefit Premiums
CMS and
Social Security Administration
officials have agreed on a plan that will prevent Medicare beneficiaries
from losing the entire value of their Social Security checks to pay
Medicare prescription drug premiums,
CQ HealthBeat reports.
Some Medicare beneficiaries have their prescription
drug premiums deducted directly from their Social Security checks, but
federal computer systems do not allow premiums to be deducted from the
checks immediately after enrollment or switching drug plans. As a
result, some beneficiaries might not receive any Social Security
payments in subsequent months in order to make back payments.
Senate Special Committee on Aging
Chair Gordon Smith (R-Ore.) on Friday said he met with CMS Deputy
Administrator Leslie Norwalk and SSA Commissioner Joanne Barnhart, who
drafted a plan to correct the problem.
Smith said CMS and SSA have agreed that seniors at
risk of losing the entire value of their checks will receive
notification about the issue before it occurs and will be given the
option of paying the back premiums over a longer duration.
Norwalk said one step CMS will take to reduce the
number of beneficiaries with back payment issues will be to make direct
payment from bank accounts the first option on a form that beneficiaries
fill out to choose a payment arrangement.
A Smith aide said that 80% of beneficiaries at risk
of losing an entire month's Social Security check owe premiums totaling
less than $200. He said he asked CMS how many beneficiaries are at risk
of losing their entire check, but the agency has not provided a number.
Smith added that recent
glitches in the payment
system beneficiaries illustrated that SSA needs a new computer system.
Smith said SSA's scheduled $200 million cut for fiscal year 2007 should
be reversed to fund computer improvements (Reichard, CQ HealthBeat,
9/29).
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