05/16/2019
Important information
If you currently have your part D (prescription) or Part C (Medicare Advantage) premiums taken from your Social Security checks every month, you could be effected by this.
THIS IS VERY IMPORTANT SO PLEASE READ CAREFULLY
I am writing to you today to notify you about an issue affecting all Medicare members who elected to pay plan premiums from their Social Security Administration (SSA) or Railroad Retirement Board (RRB) check.
Background Information
Normally, when members select this premium payment option, the SSA/RRB withholds funds from members’ SSA/RRB checks to cover their plan premiums. Unfortunately, due to a system issue, this did not occur for two or more months starting February 1, 2019. This issue affected all carriers. Although the system issue is now fixed, the SSA/RRB cannot retroactively deduct premium payments from members’ checks.
What do members need to do?
Because these members now have past-due accounts, their premium payment method has changed to direct billing, effective February 1, 2019. This means they now need to pay any past-due premium amounts directly to the carriers holding their Medicare supplement plans.
Member Communication
Members will receive a letter later this month explaining what happened and what steps need to be taken. Letters are being mailed between May 10-24, so members will receive them over the next several weeks.
What happens next?
Some carriers have already submitted a new request to restart SSA premium deduction for the affected members, effective June 1, 2019. If the request is accepted by SSA, they will send members a letter of approval. Please be aware this can take up to 90 days.
Please understand that the SSA will only deduct future premiums from their Social Security check as of the effective date noted in their approval letter, so any balances owed up until that effective date must be paid to the carrier directly. Members need to pay premiums directly to the carrier for any months the SSA or RRB doesn’t cover.
While these members are not currently at-risk for termination due to nonpayment, they do need to begin making payments to ensure their plan does not face termination for nonpayment in the future.
If you have any questions about your particular situation, please call Member Services by dialing the number on your member ID card for your PART C OR D (prescription) plan. The Member Services team is available 7 days a week, from 8 a.m. to 8 p.m.
