Font size:
CMS Letter Related to MA Premium Withholding Issue
We wanted to let you know that we are sending a letter to some Medicare beneficiaries in your area notifying them of an error in their Part B premiums.
As you know, some Medicare Advantage plans use their rebate dollars to buy down some or all of their enrollees’ Part B premium. In those cases, beneficiaries see a higher Social Security payment to account for the lower Part B premium that is being withheld. In 2007, some Medicare Advantage plans have reduced Part B premiums on a monthly basis by anywhere from $0.50 to $93.50 (the full amount of the Part B premium in 2007).
Changes to a plan’s benefit package either by a plan modification or a beneficiary choosing a different plan can result in cases where the correct amount is not withheld from the beneficiary’s Social Security payment. CMS has discovered about 30,000 beneficiaries who are currently receiving a premium reduction in error; some of these beneficiaries have received this reduction since 2006. The majority of beneficiaries who have received there reductions in error are in Puerto Rico, Florida, Texas, and California.
Medicare beneficiaries should begin seeing these letters in their mailboxes around December 1. The letter (attached) indicates that the error is being corrected and their Social Security payments will be lower beginning with their December 2007 payment to reflect the correct Part B premium.
As you know, some Medicare Advantage plans use their rebate dollars to buy down some or all of their enrollees’ Part B premium. In those cases, beneficiaries see a higher Social Security payment to account for the lower Part B premium that is being withheld. In 2007, some Medicare Advantage plans have reduced Part B premiums on a monthly basis by anywhere from $0.50 to $93.50 (the full amount of the Part B premium in 2007).
Changes to a plan’s benefit package either by a plan modification or a beneficiary choosing a different plan can result in cases where the correct amount is not withheld from the beneficiary’s Social Security payment. CMS has discovered about 30,000 beneficiaries who are currently receiving a premium reduction in error; some of these beneficiaries have received this reduction since 2006. The majority of beneficiaries who have received there reductions in error are in Puerto Rico, Florida, Texas, and California.
Medicare beneficiaries should begin seeing these letters in their mailboxes around December 1. The letter (attached) indicates that the error is being corrected and their Social Security payments will be lower beginning with their December 2007 payment to reflect the correct Part B premium.
| Attachment | Size |
|---|---|
| 18K PW final 11.20.07.doc | 139.5 KB |
