Social Security Pay-out
Aug. 24, 2006 (WA). An error in mailing out Social Security Medicare checks resulted in a pay-out for the Social Security Administration. When beneficiaries received a letter originating from the Social Security Administration, they were surprised to find out that their Medicare premiums would no longer be deducted from their monthly Social Security checks. In addition, the correspondence also stated that they would be receiving an additional $415 to be deposited in their account.
Over 230,000 recipients of Medicare nationwide have erroneously received the same letter from Social Security. A spokesperson from the Center for Medicare and Medicaid Services is Dallas stated that close to $50 million were incorrectly disbursed because of such irregularity. In an aim to prevent further pay-out, the Social Security Administration advised the public not to spend those dollars and not to encash those checks. The SSA would be sending follow-up correspondence advising the public how to reimburse the government money.
This irregularity happened when a group of recipients were accidentally lumped with a much smaller group of beneficiaries who were changing from the Medicare prescription plan to another plan. This change usually is coupled with some form of reimbursement and said transactions are done on a daily basis. Social Security officials also stated that Medicare would not be able to start making deductions from those who were affected until October. They also advised the public to be wary of individuals who would pose as officers of SSA and call recipients asking for sensitive information posing as Medicare representatives.
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