As a follow-up from last week regarding the erroneous plan premium refunds, the Centers for Medicare & Medicaid Services (CMS) is sending a letter to the approximately 230,000 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 (attached at right) explains the error and provides beneficiaries with options for returning the overpayment.

In brief, 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. We intend to continue to do all we can to ensure that beneficiaries’ Social Security payments reflect accurate premium adjustments.

Please keep in mind that the Social Security withholding is working smoothly for the vast majority of the 4.7 million beneficiaries who are using the premium payment option, and the people who had their plan premiums mistakenly refunded will not lose any of their Medicare coverage.

Thank you.