Partial Medicare Beneficiaries to Receive $90 Rebate Amid Rising Costs
TL/DR –
Roughly one-third of Medicare recipients are expected to receive payments this week. Eligible beneficiaries will receive a $90 rebate, with most people getting a direct deposit. The payments will come out of the Medicare Improvement Fund created by Congress in 2008, and critics characterize the payments as a pre-election stunt rather than a solution to issues in healthcare costs and administration.
Key Information on Medicare Payments
Only around one-third of all Medicare beneficiaries qualify for the forthcoming payments expected this week. Notably, about 35 million Medicare Advantage beneficiaries, plus millions of disabled and low-income Medicare recipients, are excluded.
The Republican president’s election-year assurance comes as the Nov. 3 midterms draw near, with living costs and healthcare expenses being voters’ paramount concerns.
Who Stands to Benefit?
Approximately 20.8 million U.S. residents enrolled in the original Medicare Part B, who do not receive Medicaid premium assistance or pay an income-related monthly adjusted amount, will benefit. However, the over half of the eligible 64.2 million Medicare beneficiaries enrolled in Medicare Advantage, along with 12 million low-income older adults and disabled individuals receiving premium assistance, will not get a payment, as per KFF, a healthcare research nonprofit.
The Part B program covers costs such as doctor’s visits, ambulance services, and lab tests. Total monthly costs usually start around $200, contingent on income.
Payment Execution
As per the Centers for Medicare & Medicaid Services website, eligible beneficiaries will receive a $90 rebate this month. Most will get a direct deposit around Friday, while others will get a Treasury Department paper check later in October. Juliette Cubanski, director of KFF’s program on Medicare policy, reiterated that the payment will be automatic, and beneficiaries need not call or register.
People can call 1-800-MEDICARE (1-800-633-4227) or the Social Security Administration at 1-800-772-1213 to confirm eligibility and payment status respectively.
Source of Funds
Funds for these payments will be sourced from the Medicare Improvement Fund, established by Congress in 2008 to enhance the Medicare fee-for-service program. The fund‘s purpose has expanded post various legislative changes. This is the first time under Trump’s administration that the fund has been used to pay recipients directly.
Critiques of the Plan
Critics view the $90 payments as a pre-election gimmick rather than a solution to healthcare costs’ structural issues. Trump’s recent promise of $500 rebate checks to approximately 1 million Obamacare beneficiaries across 30 states has also been controversial.
Cubanski notes that the Medicare rebate payments are being dispersed during a period of rising food, energy, gas, and healthcare costs, adding, “This might be helpful for people but it might not go very far.”
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