Government mistakenly refunds money to Medicare recipients

Thursday, August 24, 2006 WASHINGTON (AP) — Don't cash that check. The federal government has erroneously reimbursed about 230,000 Medicare recipients for monthly premiums they paid this year for prescription drug coverage. For many, the checks — totaling nearly $50 million — have already arrived. The refund will undoubtedly cause confusion, particularly because it comes with a letter that mistakenly instructs seniors that their monthly premiums will no longer be deducted from their Social Security check. Mark McClellan, who oversees the Centers for Medicare and Medicaid Services, said people who get the check need to know two things. One, the money has to be returned. Two, their prescription drug coverage will continue. "It's very important for people to know their coverage is continuing," he said. "There's no disruption at all." Medicare officials say they caught the glitch just after the checks were sent out last week. As a result, they sent a second letter Tuesday letting people know about the problem. The average overpayment comes to about $215. In many cases, seniors get their Social Security payment through direct deposit. They, too, should set the extra money aside and not use it for other purposes because the payment will have to be returned, officials said. About 5 million people pay their monthly premiums for Medicare drug coverage by having the government withhold the money from their Social Security check. Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.