COBRA Warning for People Eligible for Medicare

If you are eligible for Medicare, regardless of whether you signed up for it, COBRA can bite you! COBRA - the Consolidated Omnibus Budget Reconciliation Act - gives you the legal right to continue group health benefits when they might otherwise end due to job loss, divorce or death. They are the same as those you had in the employer plan. Yet, federal rules that apply while you are working and eligible for Medicare are very different when you stop working and are on COBRA.

If you are eligible for Medicare when you sign up for COBRA, your benefits will be secondary to Medicare, even if you haven’t actually signed up for Medicare yet. And you could be subject to late enrollment penalties when you do sign up for Medicare later. In addition, a COBRA carrier might be able to recover from you any benefits that were paid as primary coverage, even though you paid the entire premium that you and your employer paid while you were working. See our COBRA section for more information on the relationship between COBRA benefits and Medicare. Read more.

New Fact Sheet on Medicare Part C & D Plan Enrollment Changes for Dual Eligibles

The Centers for Medicare and Medicaid Services (CMS) issued new rules limiting enrollment and disenrollment from Medicare Advantage (Part C) and Part D prescription drug plans for Medicare beneficiaries with low incomes. In the past, people with Medicare and Medi-Cal coverage (also known as dual eligibles) – and beneficiaries with the Part D Extra Help that lowers their Part D drug costs could change their Medicare Advantage or Part D plan any time throughout the year. Effective January 1, 2019, the new rule limits enrollment changes to only once per quarter.

With funding from our California Senior Medicare Patrol (SMP), our partners, Justice in Aging created a factsheet that explains these changes in detail and how they impact low-income Medicare beneficiaries in California. Read more.

CalABLE Provides People with Disabilities a Path to Economic Security

California’s Achieving a Better Life Experience (CalABLE) program is now open for enrollment! This is great news for hundreds of thousands of Californians with disabilities, as this program will empower them to save for their futures, without worrying that they’ll lose access to vital public programs.

Specifically, CalABLE will allow qualified people with a disability to establish a tax-advantaged savings account and save up to $15,000 a year with a max of $100,000 without losing critical public benefits, such as Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). Contributions can be made by family members, friends and/or the individual themselves. Also, earnings in these accounts are not subject to federal or California state income tax, as long as they are spent on qualified disability expenses. Read more.

Alert ~ Delayed Billing for Medicare Part B Premium Payments in December 2018

We received word earlier this month from the Centers for Medicare and Medicaid Services (CMS) that there was a delay in the mailing of the December 2018 Medicare Premium Bills (CMS-500). Bills are normally mailed by the 10th of each month. Yet, last month, CMS’ print contractor mailed the Medicare Premium Bills almost a week late, between December 15th and December 17th. While most beneficiaries should not be negatively affected, CMS has assured us that “measures are being taken to prevent beneficiaries who were already at risk of termination from losing their coverage, as a result of the late billing.”

If you know of beneficiaries already at risk of termination, please advise them to make their payment as soon as possible. If any beneficiaries are terminated due to non-payment, they should contact the Social Security Administration for assistance at 1-800-722-1213. If a beneficiary still has not received their bill, they should call 1-800-Medicare. Beneficiaries can also call their local Health Insurance Counseling and Advocacy Program (HICAP) for assistance. Read more.

Beware of Fake Calls Regarding Your Social Security Number

Last fall we warned of “spoofed” Social Security phone scams, where scammers “appear” to be from Social Security and ask for your Social Security number. These scams are continuing AND the Federal Trade Commission has received some reports of these scams with new twists. In one version of the scam, the caller says your Social Security number has been linked to a crime (often, he says it happened in Texas) involving drugs or sending money out of the country illegally. He then says your Social is blocked – but he might ask you for a fee to reactivate it, or to get a new number. And he will ask you to confirm your Social Security number.

In other variations, he says that somebody used your Social Security number to apply for credit cards, and you could lose your benefits. Or he might warn you that your bank account is about to be seized, that you need to withdraw your money, and that he’ll tell you how to keep it safe.

All of these are scams. Learn some tips from the FTC on how to keep safe. You can also report such scams to our California Senior Medicare Patrol (SMP) at 1-855-713-7080. Read more.

DME Conviction & Fraud Settlement Reported

Durable medical equipment (DME) fraud continues to be one of the top kinds of fraud reported to our California Senior Medicare Patrol. We receive many cases where beneficiaries disclose personal information to callers offering them braces. In other cases, beneficiaries respond to TV commercials advertising braces to alleviate pain and later receive a low quality brace or no brace at all. In all types of cases, Medicare often pays hundreds of dollars for DME that is medically unnecessary and/or DME that isn’t rendered. Recently, we’ve also heard of scammers calling beneficiaries and telling them that a UPS package is waiting for them, and to accept it, they must give their personal information. These examples just represent a taste of the multiple types and proliferation of DME scams out there.

This article provides a summary of two recent Department of Justice (DOJ) cases regarding DME fraud. One is a conviction and the other is a settlement. Read more.

Bonnie Burns Again Appointed as Consumer Liaison Representative for NAIC

Our Training and Policy Specialist, Bonnie Burns is once again chosen to be a Consumer Liaison Representative in 2019 for the National Association of Insurance Commissioners (NAIC). She does stellar work and advocacy on behalf of consumer protections and rights! Thank you, and great job, Bonnie Burns! Read the press release.

CHA Advocacy Updates

Upcoming Webinar:
Medicare & Dual Eligibles 2019 Update, 1/24

Join us for our free webinar on Medicare and dual eligibles in 2019 on Thursday, 1/24 at 10 a.m. Our presenter, Georgia Burke, Directing Attorney with Justice in Aging will address the following topics:

Changes in Special Enrollment Period for LIS/Duals
Supplemental Benefit Changes in Medicare Advantage
Opioid Lock-Ins
Language Access Improvements
QMB improvements update
Default Enrollment and D-SNP's

Thank You in advance! :-) Your help ensures the continuation of our advocacy and education work on behalf of California’s over 5 million Medicare beneficiaries. Make your tax deductible donation today!

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