Medicare Premiums Snafu Affects 250,000 Social Security Recipients
A software glitch could mean surprise bills for some seniors who owe unpaid Medicare Advantage and Part D plan premiums.
It seems like the simple, hassle-free way to pay your Medicare premiums: Have them withheld from your Social Security benefits.
But now, about 250,000 seniors who opted to have their Medicare premiums taken out of their Social Security checks are getting bills for as much as five months of unpaid premiums.
Because of an “isolated software issue,” the Social Security Administration says it failed to withhold Medicare Advantage and Part D prescription-drug plan premiums from some beneficiaries’ checks starting with January 2019 benefits, which were paid in February. So the plans didn’t get their money—in some cases, from February through June—and will bill enrollees directly instead. People who enrolled in an Advantage or Part D plan for 2019 and asked to have their premiums deducted from their Social Security payments may be affected.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The glitch may sow confusion, financial stress and, in some cases, even coverage lapses among affected seniors, consumer advocates say.
“The systems issue has been corrected,” a spokesperson for the Centers for Medicare and Medicaid Services said, and the agency is working with plans to reach out to affected enrollees. Premiums should be properly deducted from beneficiaries’ Social Security payments as of June or July.
If you’re not certain whether you’ve been affected, “call the plan proactively” to find out, says Lindsey Copeland, federal policy director at the Medicare Rights Center. If you get a bill that you can’t afford to pay, be aware that plans must allow enrollees to stretch past-due premium payments over a period at least as long as the delay in billing. Plans must also offer a grace period of at least two months before disenrolling members for failure to pay.
Some affected beneficiaries lost coverage but resolved the issue through their state health insurance assistance program, says Leslie Fried, senior director of the Center for Benefits Access at the National Council on Aging. To find your local SHIP, go to shiptacenter.org or call 877-839-2675. Seniors who need help can also call Medicare at 800-633-4227 or the Medicare Rights Center at 800-333-4114.
-
Stock Market Today: Markets Rebound Ahead of Big Week for Earnings
Equities rallied on easing geopolitical tensions, upcoming quarterly results.
By Dan Burrows Published
-
A Financial Checklist for Widows
An interview with a financial adviser about the financial steps widows should take.
By Janet Bodnar Last updated
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
SEP IRA Contribution Limits for 2024
SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 a year.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
SIMPLE IRA Contribution Limits for 2024
simple IRA The maximum amount workers at small businesses can contribute to a SIMPLE IRA increased by $500 for 2024.
By Jackie Stewart Published
-
457 Contribution Limits for 2024
retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
By Jackie Stewart Published
-
Roth 401(k) Contribution Limits for 2024
retirement plans The Roth 401(k) contribution limit for 2024 is increasing, and workers who are 50 and older can save even more.
By Jackie Stewart Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
By Vaishali Varu Last updated