Update - Still Open - The Part D Premium Refund and Reimbursement Case

Update - Refunding the Medicare Part D Premium Reimbursement – Case to be heard in January

Short Summary:As noted in last months Newsletter, a government computer error resulted in over 230,000 Medicare beneficiaries mistakenly getting a refund on their Medicare Part D premiums.The Centers for Medicare and Medicaid Services (CMS) sent letters to people, asking that the refunds be returned to the government. In response, to the CMS letter, a lawsuit was filed by the consumer advocacy groups Action Alliance of Senior Citizens and Gray Panthers asking that CMS inform the affected Medicare beneficiaries of their right to request a waiver of recovery.The advocacy groups are being represented by the Center for Medicare Advocacy, Inc in their suit against CMS.

So where are we now? In late September a Federal judge ordered CMS to inform all 230,000 beneficiaries of their rights to seek a waiver of recovery. CMS was also ordered to stop recovering the Medicare Part D premium refunds - and to return those refunds already collected, allowing all beneficiaries the opportunity to request a waiver of recovery. CMS appealed and early this month a Federal appeals court awarded CMS a temporary hold on this earlier decision. Further preliminary hearings will be held and a trial date for the entire matter is set for January 2007. CMS noted that it will continue its efforts to collect the erroneous payments and at present has recovered from about half of the affected beneficiaries.

What to do? Once again, this question remains open until a final court determination. If repayment would cause economic hardship, Medicare beneficiaries may want to consider holding off on their repayment until a final court ruling in January, 2007. In the meantime, the Center for Medicare Advocacy website noted that: “If you have received the premium payment and been told to return it, and wish to participate in this lawsuit, please contact us (mshepard@medicareadvocacy.org).” (see also, http://www.medicareadvocacy.org/default.htm)