Judge: CMS can't reclaim refunds

Last month, a "data processing error" at CMS caused the agency to incorrectly refund 231,000 Medicare recipients a total of $50 million--an average of about $215 per beneficiary. At the time, CMS said it would reclaim the cash, but critics observed that some cash-strapped recipients might have difficulty returning the money. Now a federal judge has quashed CMS's attempts to reclaim the money, ruling that doing so deprives beneficiaries of their fifth amendment rights. He ruled that many recipients could be exempt from repaying the cash and that they must have the opportunity to file a waiver if returning the money causes financial hardship. "If a beneficiary requests a waiver, the government cannot try to recoup the money until the secretary of health and human services rules on the request, Judge Kennedy said in issuing a preliminary injunction sought by the plaintiffs," explains the New York Times. Any money that's already been returned to CMS must be sent back to beneficiaries. Lawyers for the agency haven't indicated whether or not they'll appeal the ruling.

For more on the ruling:
- read this New York Times report

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