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Social Security News
Medicare Advocacy Center Says Check Social Security
1099 Carefully
Problems in 2006 prompt warning from advocacy group
 March 21, 2007 - Medicare beneficiaries with Social
Security income have been receiving their Social Security 1099 forms,
which report income received in 2006 and deductions taken from that
income, including Medicare premiums. The Medicare Advocacy Center says
senior citizens should check them carefully, based on bad experiences in
2006.
In 2006, the Social Security Administration (SSA)
and the Centers for Medicare & Medicaid Services (CMS) had difficulties
in accurately withholding Part D premiums from beneficiaries Social
Security checks.
"We advise beneficiaries to scrutinize their SSA
1099 forms to be sure that both income and deductions reported are
consistent with their own records," says a statement by CMA..
The following cases were cited by the center that
they suspect may reflect widespread problems:
● In early 2006, a beneficiary requested that her
Part D premium be withheld. She then left the plan for which the
premium was being withheld and requested that the withholding cease.
Despite the request, withholding continued and she
had premiums deducted for the entire year. As she tried to work matters
out, SSA informed her that their records did not show any deductions.
The SSA 1099 she received, however, reported
deductions for the whole year. She checked with her bank to verify the
amount of her Social Security benefit that had been direct deposited and
was able to verify that the premiums had, in fact, been withheld
throughout the entire year. SSA, however, asserts that the 1099 they
have for her shows no deductions. This mystery is, as yet, unresolved.
● A second case relates to the incorrect Part D
premium refunds that SSA sent to approximately 230,000 beneficiaries
last summer. A beneficiary and her spouse received the refunds each
received a different amount although their premiums were identical.
They did not, however, receive the letter from CMS
telling them how to return the refunded amount. Without directions about
how to return the refund, they did not return the money. Their premiums
had been correctly deducted from their checks throughout the year.
When they received their 1099s for 2006, the amount
shown for their Part D payments for 2006, presumably reported on the
1099 for the benefit of those who itemize deductions of medical expenses
on their income taxes, was $200 less than the actual amount of premiums
paid. After considerable sleuthing they determined that
(1) the reduction was equal to the amount of the incorrect premium
refund that they had not returned, but
(2) because they have taxes withheld from their Social Security
payments, the incorrect refund amount they received was actually lower
than the amount that was allotted to them.
While it appears that this explanation is correct,
it was not easily discernable from the 1099 and was extremely confusing,
says the center.
"The couple is also understandably concerned about
potential further complications if CMS takes additional steps, in 2007,
to recover the incorrect premium refund (which, at this time, appears
unlikely)," according to CMA
The Center for Medicare Advocacy believes that
other permutations of the 1099 story exist. "We are eager to hear from
beneficiaries and their advocates to determine if systemic problems
exist which need broader attention than individual problem-solving."
The MAC says seniors finding problems with their
SSA 1099 should call their local Social Security office.
>>
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