Report Finds Medicare Funds Never Made it to Recipients

According to a report on MSNBC, millions of dollars intended to help the poorest of Medicare recipients probably never maid it to them, and instead, stayed with the insurers during the first year of the program.

The report stated that many dual-eligible seniors whose income is so low that they are also eligible for Medicaid were never informed that they could seek reimbursement for several drug related expenses.

MSNBC wrote, “The federal government pays the insurers for that retroactive coverage — about $100 million in 2006. Then, the plans are required to reimburse their dual-eligible customers for drug costs incurred during those months when they were eligible for extra help but not yet in their new plan.”

The government accountability office said, “Given the vulnerability of the dual-eligible population, it seems unlikely that the majority of these beneficiaries would have contacted their (insurance plan) for reimbursement if they were not notified of their right to do so.”

More must be done to inform seniors that they may be eligible to be re-compensated for drugs they may have purchased on there own while enrolled in the plan. Currently, the only step taken to enlighten seniors is a “recently revised the letter it uses to notify dual-eligibles they've been enrolled in a drug plan. The letter now lets beneficiaries know they may be eligible for reimbursement of previous expenses.”

Sen. Jay Rockefeller, D-W.Va., said the report sheds light on "yet another example of how private plans are being grossly overpaid for services they have not provided."
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