CMS sued over Medicare refund

September 25, 2006

In response to a lawsuit filed by the Center for Medicare Advocacy, CMS has agreed to halt its efforts to recover the more than $50 million it mistakenly sent some 230,000 Medicare beneficiaries.

In response to a lawsuit filed by the Center for Medicare Advocacy, CMS has agreed to halt its efforts to recover the more than $50 million it mistakenly sent some 230,000 Medicare beneficiaries. The lawsuit alleges that CMS did not properly inform beneficiaries that they may have the right to ask for a waiver, excusing them from repaying the refund. Waiver of recovery where the beneficiary is not at fault in causing the overpayment and where certain other conditions exist is provided by statute for many government benefit programs in recognition of the hardship that recovery might cause for beneficiaries with fixed low incomes. A hearing on the preliminary injunction has been scheduled for Sept. 26.

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