WASHINGTON – U.S. Rep. Benjamin L. Cardin announced today that the federal government will refund Medicare Part B premium overpayments to more than 500 military retirees and spouses by the end of June, reversing an earlier decision to credit the amounts to Medicare premiums due in future months. 

 

Citing lengthy delays, the Congressman has been urging the Centers for Medicare and Medicaid Services (CMS) to complete implementation of Section 625 of the 2003 Medicare law, which eliminates normal Medicare Part B late enrollment penalties for approximately 84,000 military retirees enrolled in TRICARE-for-Life.  In January, Rep. Cardin requested a GAO investigation into delays in the implementation process.

 

Rep. Cardin introduced the TRICARE Retirees Opportunity Act in 2001 and 2003, and its provisions were incorporated into the 2003 Medicare Modernization Act.  In addition to eliminating future penalties, the law requires Medicare to refund overpayments made since January 1, 2004 for more than 18,000 military retirees and spouses who were already paying penalties.  

 

More than 17,000 checks totaling approximately $5.2 million have already been mailed, according to the Social Security Administration (SSA), which handles Medicare enrollment.   However, the Congressman’s office recently learned that more than 500 seniors who do not receive monthly Social Security benefits have not received their refunds.  These seniors are in what is considered “premium billing status,” meaning that they pay their Medicare Part B premiums directly, rather than having the costs deducted from their monthly Social Security checks.

 

CMS had decided not to issue these beneficiaries a refund, but instead to “credit” their refund amount to future premiums due.  According to prior CMS policy, if these beneficiaries died prior to receiving all due credit, their heirs would have to request a refund from the Medicare program.

 

The Congressman gave as an example a couple who is due a $1,358 refund.  If their refund is credited to future Medicare premium payments, it will take approximately 18 months for them to get their full refund.  The average refund due is about $470 according to SSA, and Medicare Part B premiums are $78.20 for 2005. 

 

“This clearly was not the intent of my bill or the resulting law.  Because these retirees and spouses do not receive Social Security checks, an administrative decision was made not to send them a refund,” said Rep. Cardin. “Congress passed the Medicare Modernization Act nearly 18 months ago, and this process should have been completed by now.  CMS’s reversal means that the law finally will be implemented.”

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