Federal Fumble: Seniors Must Return Money

The Federal Government recently dispersed $50 million in Medicare prescription plan premium refunds and would like seniors to return the money. About 230,000 seniors received an average refund of $215. Some seniors received the money directly deposited into their accounts.

The mistake, blamed on a computer glitch, came to light earlier this month when Medicare beneficiaries with Part D prescription plans began receiving letters stating that their drug benefits had been canceled.

The Centers for Medicare and Medicaid Services have mailed out a total of three letters informing seniors of the error and giving them instructions on how to repay the money. For those who have direct deposit and/or those who have already spent the erroneous money, officials are willing to work with seniors to repay the money. They are offering various payment methods which include an up to seven month payment plan. The due date for repayment is September 30.