Mental Health Part D News Alert

August 29, 2006

Erroneous Plan Premium Refunds: CMS corrective measures

The Centers for Medicare and Medicaid Services (CMS) will provide a range of options for assuring that the refunds go to the intended purpose of paying beneficiary premiums while minimizing inconvenience for beneficiaries. Beneficiaries will have the option to return the premium payments by returning the voided check, sending a personal check, or authorizing an electronic debit from their account.

CMS is sending a letter to the people who mistakenly received refunds for their drug plan or Medicare Advantage plan premiums in their August 2006 Social Security benefit payments either via checks or direct deposits. This letter explains the error and provides beneficiaries with options for returning the overpayment. In addition, CMS has issued a Partner Tip Sheet that also explains steps people can take right now to help correct this situation. Also provided is an article suitable for use in your organization's newsletters and beneficiary publications that explains what CMS is doing about this issue.