False alarm: Error causes 40,000 Texans to think they lost Medicare premium assistance

On Jan. 3, Austin retiree Steve Ashley received a letter from the Social Security Administration stating that the state of Texas would no longer be paying his premium for Medicare Part B.

Medicare Part B is the part of Medicare that includes doctor visits, preventive care such as vaccines, outpatient care and some home health care. Most people pay $164.90 per month in 2023 for Part B, unless they qualify for assistance though the state.

The state of Texas covers Part B coverage for individuals who make less than $1,133 a month or couples making less than $1,526 and have resource limits of $7,970 for individuals or $11,960 for couples. In another program, the monthly limits are $2,265 and $3,052 for premium assistance.

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For Ashley, according to the letter, of his roughly $771 a month Social Security check, he would be left with $271 on Feb. 3 to make up for back payment of two months' premiums ($335) plus the upcoming month ($164.90). Then going forward, with the $164.90 premium taken off, he would get $606 a month.

Ashley made phone calls to try to figure out what was going on, but no one seemed to know. He found other people who received similar letters and figured Texas had cut its Medicare premium assistance program.

"Living on a fixed budget leaving little wiggle room, this reduction means I cannot pay the rent on my room for several months and I would face eviction," Ashley wrote in an email to the American-Statesman.

In his mind, faced the dilemma: stay housed or have health care. "I have enjoyed the best health care in my life under Part B and will hate to lose it," he wrote. "So I don’t have Part B, I get sick and die. Or, I have Part B but live on the streets and get sick and die."

Medicare Part B costs $164.90 a month unless you qualify for premium assistance through the state.
Medicare Part B costs $164.90 a month unless you qualify for premium assistance through the state.

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As it turned out, the answer was none of the above. Ashley's Medicare Part B premium will still be paid by the state. He received such a letter from the Social Security Administration in error -- as did about 40,000 Texans.

"On Jan. 4, 2023, the Texas Health and Human Services (HHSC) discovered a system error in which the Social Security Administration (SSA) was sent a partial file that did not include all eligible individuals for the state to pay their Medicare Part B premium," said Tiffany Young, a spokesperson for Texas Health and Human Services. "On Jan. 6, 2023, HHSC systematically reinstated Medicare Plan B coverage for the affected recipients to prevent deductions from February benefits due to this error."

No deductions were taken from any of the 40,000 people's Social Security check, she wrote. No additional deductions should be taken out for those who are eligible for Medicare assistance.

"Individuals do not need to take any action and will receive a notice of eligibility from SSA informing them of their benefit coverage," she wrote.

If there are questions regarding benefits, people can call call 211, option 2 (1-877-541-7905), or visit their local Health and Human Services benefits office, or check the YourTexasBenefits.com website and/or mobile application.

"Thank you so much for getting to the bottom of this 'glitch,'" Ashley wrote in an email "Those of us who are poor and without assets depend upon our Social Security lifeline. A reduction would impact us greatly. Glad to get verification that this glitch is corrected. Thanks for your interest in the health care for the elderly."

This article originally appeared on Austin American-Statesman: Error causes 40,000 Texans to think they lost Medicare premium plan